Who Keeps the Vacation Home During an Illinois Divorce?

 Posted on May 08, 2026 in Family Law

The decision about who keeps the vacation home during an Illinois divorce depends on several factors. These include how the property was acquired, whose name is on it, and how a court weighs the overall division of marital assets. In most cases, a vacation home bought during the marriage is considered marital property. That means both spouses have a claim to its value. It does not always mean a 50/50 split, but both spouses have rights. If you are going through a divorce in 2026 and a vacation home is part of the equation, Farooqi & Husain Law Office can help. Our Oakbrook Terrace, IL divorce lawyers will fight for a fair, equitable division of all your property.

Is the Vacation Home Marital or Non-Marital Property in IL?

The first question in any property dispute is whether the asset is marital or non-marital. Under the Illinois Marriage and Dissolution of Marriage Act, 750 ILCS 5/503, marital property includes most assets acquired by either spouse during the marriage. This is true regardless of whose name is on the title. Non-marital property includes assets one spouse owned before the marriage or received as a gift or inheritance, as long as those assets were kept separate.

If the vacation home was bought during the marriage using marital funds, it is almost certainly marital property. If one spouse owned it before the marriage or inherited it, it may be non-marital.

However, if non-marital property was mixed with marital funds, the lines can blur. For example, using joint income to pay the mortgage or make improvements can change the property's status. It can create a marital interest in the property or lead to reimbursement claims.

How Does Illinois Divide Marital Property?

Illinois does not require a 50/50 split of marital property. Courts divide property equitably, which means fairly based on the specific circumstances of the case. Under 750 ILCS 5/503, Illinois courts consider a range of factors when dividing property, including:

• How long the marriage lasted

• Each spouse's contribution to acquiring and maintaining the property

• Each spouse's current financial situation and future earning potential

• Whether one spouse will have primary allocation of parental responsibilities

• The value of each spouse's non-marital property

• Any agreements the spouses made about property during the marriage

A vacation home is just one piece of the overall marital estate. What happens to it often depends on how other assets are divided at the same time, like the primary residence, retirement accounts, and bank accounts.

Can One Spouse Keep the Vacation Home During a Divorce in Illinois?

One spouse can keep the vacation home during a divorce. There are a few ways this typically plays out. The first option is a buyout. The spouse who wants to keep the home pays the other spouse their share of the equity. This requires either having enough cash or being able to refinance the mortgage in their name alone.

The second option is a trade. One spouse keeps the vacation home. The other receives assets of comparable value in exchange, such as a larger share of retirement accounts or the primary residence.

The third option is a sale. If neither spouse can afford a buyout, or if they cannot agree on the value, the court may order the home sold. The proceeds are then divided between them.

What if Both Spouses Want To Keep the Vacation Home?

When both spouses want the vacation home, it becomes a contested issue. It has to be resolved through negotiation or by the court. A judge will not award the home to one spouse simply because they want it more. The decision will be based on the equitable distribution factors, including each spouse's financial ability to maintain the property and their overall share of the marital estate.

In some cases, divorcing spouses agree to co-own the vacation home for a period of time. This can happen when children are involved, and the home holds sentimental value. This arrangement can work. But it requires a detailed agreement about expenses, usage, and what happens when one spouse wants to sell.

How Is the Vacation Home Valued During a Divorce in IL?

Getting an accurate value for the vacation home is an important step. The value used in negotiations or by the court is usually the fair market value that the home would sell for on the open market between a willing buyer and a willing seller. A professional appraisal is typically used to determine this.

If the spouses disagree on the value, each may hire their own appraiser. The court may then have to decide which valuation is more credible. Issues like deferred maintenance, local market conditions, and the rental income the property generates can all affect the value.

What if There Is a Mortgage on the Vacation Home During the Divorce?

If the vacation home has a mortgage, that debt is part of the equation. Equity is calculated by subtracting what is owed on the mortgage from the property's fair market value. If the home is underwater, meaning the mortgage balance is more than the home's value, the debt itself becomes an issue in the divorce settlement.

If one spouse keeps the home, they generally have to refinance the mortgage in their name alone. This removes the other spouse's liability. If they cannot qualify for refinancing, selling the home may be the only practical option.

Contact Our DuPage County, IL Divorce Lawyers Today

The Oakbrook Terrace, IL divorce attorneys at Farooqi & Husain Law Office bring a distinctive combination of legal knowledge and cultural understanding to local family law matters. Attorney Naveed combines his legal experience with a deep knowledge of Islamic family law, giving him a unique ability to help members of the Chicago Muslim community align their legal goals with their religious values. Attorney Ausaf is one of the few Muslim attorneys in Illinois with a deep understanding of how Islamic personal law intersects with U.S. law. That makes him a trusted resource for families navigating both systems at once.

Call 630-909-9114 to talk about your situation and find out how to protect your interests in the divorce process.