Will I Have to Buy Out My Spouse if I Want to Keep the House in Our Divorce?

 Posted on July 27, 2026 in Property Division

For many couples, the marital home is the single biggest asset on the table during a divorce. Per Illinois law, the home, or the value of the home, will often be divided along with the rest of the marital estate. This means that a spouse who wants to stay in the home after their divorce is final will need to understand their options for how to compensate the other spouse for their share. 

A Will County asset division attorney can help you understand what options are available to you in 2026.

Do I Have to Buy Out My Spouse to Keep the House in an Illinois Divorce?

Many divorces result in a buyout of one spouse by the other for their share of the marital home.  Illinois follows an "equitable distribution" model for property division. This means that marital property is divided fairly (though not always equally) between spouses (750 ILCS 5/503). If the home is marital property, its equity will be considered as part of the overall property division, even if only one spouse’s name is on the mortgage or the deed. 

Because of this, a spouse hoping to keep the house will typically have to compensate the other spouse in some way. A lump-sum buyout is one of the most straightforward options. If this isn’t feasible, the other spouse can be compensated with other marital assets of similar value, such as retirement accounts or investment savings.

What Counts as Marital Property?

Under Illinois law, property acquired during the marriage is generally presumed to be marital, regardless of whose name is on the title. This means a house purchased during the marriage is usually considered marital property, even if only one spouse's income paid the mortgage. A home one spouse owned before the marriage usually remains that spouse’s nonmarital property. However, the marital estate may have a right to repayment if marital funds were used to increase the home’s equity or value.

How Is a Home Buyout Calculated in Illinois?

Illinois does not have a set formula for home buyouts. There is, however, a general structure to how buyouts are typically calculated:

• A professional appraisal of the home's current market value is obtained. 

• Any remaining mortgage balance and other liens are  subtracted from the home’s value. 

• The resulting equity is divided according to what the court or the spouses consider fair. 

• Any valid claim for repayment of nonmarital contributions, such as a down payment made with premarital funds, is also considered.

Courts consider a number of factors when deciding what counts as an equitable split of the home's equity. These often include how long the marriage lasted, each spouse's economic circumstances, and each person's contributions to maintaining or improving the property.

What Are My Options If I Can't Afford to Buy Out My Spouse?

Buying out a spouse's equity isn't always financially possible, especially if most of your money is tied up in the house itself. If a full cash buyout isn't realistic, a few alternatives are often available:

• Using a cash-out refinance to place the mortgage in your name alone, remove your spouse from the loan, and provide funds for the buyout

• Offering your spouse a larger share of other marital assets instead of cash

• Agreeing to a delayed buyout (paid over time rather than all at once)

Sometimes, neither spouse can realistically afford to keep the house. In this case, the best option is often to sell the home and split the proceeds. An attorney can help you figure out which option realistically fits your finances before you commit to a course of action.

Call a Lombard, IL Divorce Attorney Today

Whether to keep the marital home is a financial as well as an emotional decision. Having guidance throughout the entirety of the process can prevent a home buyout – or sale – from becoming an undue burden. 

The The Law Offices of Robert F. Kramer, Ltd. brings more than 40 years of combined experience to divorce cases involving these kinds of decisions, including accomplished trial and appellate work. Our approach is extremely personal. We will make sure you’re informed and confident every step of the way. Call 630-785-2400 today to schedule a free initial 30-minute consultation with our Will County, IL property division lawyers.