Can an Ex-Spouse Have Equity in a House After the Divorce if Relieved of its Debt?

Full question:

Can a divorced man (whose name is still on house) be entitled to any equity in it, even if he's been cleared of any financial responsibility for it in divorce settlement?

• Category: Divorce
• Subcategory: Property Settlements
• Date: 04/07/2025
• State: Illinois

Answer:

The answer will depend on the terms for property distribution in the divorce decree. The ownership of marital property is ordered in the property settlement portion of the divorce decree. Typically, when one spouse remains in the home, the deed is ordered to be quitclaimed to that party after debts are settled. A failure to deed the property as ordered in the divorce decree may lead to a contempt charge.

Illinois is a so-called "equitable distribution" state. This means that the division of property and debts between the divorcing parties should be fair and equitable, but not necessarily equal. While the trial court's discretion will not be disturbed on appeal without a showing of clear abuse, the court will consider the following factors:

1. The contribution of each spouse to the acquisition and preservation of the marital and non-marital property;
2. The dissipation by each party of the marital and non-marital property;
3. The value of the property set aside to each spouse;
4. The duration of the marriage;
5. The economic circumstances of the parties at the time the division of property takes effect;
6. Any pre-existing rights and obligations from previous marriages;
7. Any antenuptial agreement between the parties;
8. The age, health, station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities and needs of each party;
9. The custodial provisions for any children;
10. Whether the apportionment is in lieu of or in addition to alimony;
11. The reasonable opportunities of each spouse for future acquisition of capital assets and income;
12. The tax circumstances of the property division.