Having one or more investment properties can provide a nice monthly revenue for you and your spouse, as well as leave you with financial freedom when you're ready to retire. Deciding to get a divorce can derail the benefits of your investment properties, however, so you'll need to come up with a solution that won't hurt either of you. Owning some investment properties can be a major topic of discussion in your divorce. While the value of your matrimonial home is often something that couples quarrel about, the reality is that even a small number of investment properties can represent far more value than the home in which you reside. Here are some ways that you can amicably deal with your investment properties.
Sell Them Promptly
You might not have had plans to sell your investment properties anytime soon, but the reality of your situation means that you'll need to change your plans a little. Selling your investment properties at this time in your life can be a smart move. You'll each end up with a chunk of cash that you can use for various expenses that you'll soon be facing — such as buying separate homes in which to live. If you're looking at having to pay spousal or child support, the revenue from the sale of these properties can go toward these costs.
Have One Spouse Buy The Other Out
It's possible that one spouse wants to keep the rental properties, while the other is anxious to move on from them. Rather than argue over the best way to deal with these contrasting opinions, a good solution may be to have one spouse buy the other out. For example, the spouse who elects to keep the rental properties can make regular payments to the other spouse until he or she has paid for half of the current value of the properties.
You may also want to explore the idea of keeping the rental properties. If your divorce is amicable, there's no reason that you can't continue to mutually own them — after having your attorneys draft up paperwork to this effect, of course —and reap the financial rewards. A slightly different option is to divide them. For example, if you have a pair of rental properties and you've put the same amount of money into them, you can rework the ownership so that you own one and your spouse owns the other.
For more information, contact a divorce lawyer.Share
4 November 2019