Investing in property to make a monthly income is common among couples that have saved money or have excess income. These properties simultaneously earn capital while increasing in value in the best circumstances. There are various options when you and your spouse decide to file for divorce. Liquidation of investment properties is often done to complexly disconnect from your ex. Below will outline various options that you have in terms of your investment properties when going through a divorce.
Hire a Divorce Lawyer that Handles High-End Clients
Hiring the right divorce lawyer can provide insight into the options that you have for your investment properties. Utilize a law firm that is in your state as divorce property division laws differ by state. A plan created in Los Angeles might differ immensely in restrictions than a similar plan created in Raleigh. Certain states have equitable-distribution while others consider assets to be community property. The difference is a judge will divide the property as they see fit with equitable distribution. Community property is where divorce proceedings can get ugly. A prized property like a fishing cabin or asset like a classic car might be targeted by a vengeful spouse. Divorce services and law firms vary in quality so ask about previous case success.
Selling then Splitting the Money
Selling the investment properties is an option but earning after taking the financial hit that comes with many divorces is important. Selling is often the option divorcing couples choose especially in cases of ugly divorces. The thought of having to deal or communicate with an ex due to the investment property is the main concern. When there are multiple properties, these will be divided so you will be able to choose the future of the investment property by yourself.
Splitting Income is an Option
Splitting income is an option and can be done without any contact with your ex. A property management company can work wonders by helping you earn rental income and not having to send a check/payment to your ex. The aspect that has to be agreed upon is who is responsible for hiring those for major repairs. For those that simply grew apart instead of having a contentious divorce, this can be a great option.
Paying for Your Half of the Property
An ex might not want to deal with the issues that an investment property can present. Having the property appraised then paying for your half of the property is commonly done. You will then retain full ownership to do whatever you want with the property. You will also have to decide how the rental income will be split during the divorce proceedings. A great divorce attorney will not leave out any detail. Experienced legal professionals have worked divorce cases of varying complexities.
One Spouse Can Move Into a Property
One spouse whether it is yourself or ex might want to move into a specific property. The arrangement is common as the shared home is usually sold to downsize if children are not involved. The most important aspect to handle is whether you will receive rental income from them. You do not want your ex destroying the property before they move out due to spite. A written agreement and lease will be required to protect yourself which your attorney will be able to help with.
Relationships do not always work out but understand your investments can continue to earn income for both parties. With investment properties, you need to pick a top legal professional as there is quite a lot on the line.
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