When couples divorce, they are burdened with having to make difficult decisions regarding the terms that will apply to the termination of their marriage. This includes ironing out issues of custody, support, and property division. It is understandable that during property division, conflict can arise as valuable assets are at stake. While most couples do not waste their breath over who gets the dining room set, the same is not valid for valuable investments such as rental properties. Rental properties can be lucrative investments that earn couples a significant income. During property division, couples often wonder how these investment properties will be handled. Please continue reading to learn about your options in managing your rental properties and how an adept Nassau County Property Distribution Lawyer can help you understand your legal options.
What are the options for dividing rental properties in a divorce?
Before you decide how to handle your rental properties during your divorce negotiations, you will need to know the value of the properties. To do this, you must hire an appraiser to determine each property’s market value. Once an appraisal has been determined, you and your spouse can decide how to divide your rental properties.
Firstly, if your rental properties provide your primary source of income, it may be advantageous for you and your spouse to continue to rent the property and split the profits. If you can find a way to remain, business partners after your divorce is final, this option will allow you to continue making money off your investments. However, many couples find it challenging to work with their ex as they cannot agree on each spouse’s responsibilities in managing the properties and how the income will be pretty divided.
As such, you can consider splitting the properties. If you and your spouse own several rental properties, you may be able to work out a mutually beneficial agreement in which you divide the properties, with each spouse retaining full ownership of their share. However, this option can be tricky to pull off as determining a fair way to split the properties is challenging. This is primarily because it is difficult to guarantee that each spouse will receive an equivalent value as couples may own an odd number of properties, or one property may have a lower market value than others. Nevertheless, if you can reach an agreement on how to split the properties, you will be able to continue making money off of these investments.
Another available option is buying your spouse out of their shares. This can be costly, but it may be worth the money if you are the driving force behind the rentals. If you cannot afford to buy out your former spouse, you can sell the property and split the proceeds. If the rental properties were acquired during the marriage, they would be subject to equitable distribution, meaning they would be divided fairly between each party.
If you cannot agree to divide your rental agreements, the court will order you to sell them and split the sale proceeds. If you want to continue renting your rental properties or pursue any of the other above-listed options, contact a determined lawyer from the Law Offices of Eyal Talassazan, P.C., who can help you navigate your legal options.