Divorce can be a difficult and emotional process, and it can be especially challenging to navigate the division of assets, including real estate. If you are facing a divorce, it is important to understand your rights and options when it comes to your home and other real estate holdings. A good outcome for all is possible with the right guidance and mindset, as well as working with an agent who is collaborative and solution-oriented. Here’s our guide to get you started.
What happens to the marital home in a divorce?
In most states, the marital home is considered marital property, which means that it is subject to division between the spouses upon divorce. The court will consider a number of factors when determining how to divide marital property, including the length of the marriage, the contributions of each spouse to the acquisition of the property, and the needs of any children involved.
Options for dividing the marital home
There are a number of ways to divhe marital home in a divorce. One option is to sell the home and split the proceeds equally between the spouses. Another option is for one spouse to buy out the other spouse’s interest in the home. Here are some things to consider:
- Do one or both spouses plan or want to buy a new home?
- If one or both spouse plans to buy a new home, be sure to consider debt to income ratio. Any new loan will now be underwritten on income that will no longer be jointly filed.
What if I can’t afford to buy out my spouse’s interest in the home?
If you can’t afford to buy out your spouse’s interest in the home, you may be able to negotiate a different arrangement, such as agreeing to refinance the mortgage in your name only. You may also be able to ask the court to allow you to stay in the home until the children are grown, or until you reach a certain age.
If you and your spouse own investment properties, you will need to decide how to divide them in the divorce. One option is to sell the properties and split the proceeds. Another option is to keep the properties and operate them together or separately.
If you decide to keep the properties, you will need to create a plan for managing them. This plan should include how you will make decisions about the properties, how you will divide the income and expenses, and how you will handle any disagreements.
Here are some additional things to consider when dividing investment properties in a divorce:
- The value of each property
- The income-generating potential of each property
- The expenses associated with each property
- The tax implications of dividing each property
- Your future financial needs
If you cannot agree on how to divide your investment properties, the court will decide for you. The court will consider the same factors that it considers when dividing other assets, such as the length of the marriage and the contributions each spouse made to the acquisition and maintenance of the properties.
If you are facing a divorce and you have investment properties, it is important to consult with an attorney who specializes in family law and real estate law. An attorney can help you understand your options and protect your rights.
Here are some additional tips for dealing with investment properties in a divorce:
- Get a valuation of each property. This will help you to understand the value of your assets and to make informed decisions about how to divide them.
- Be prepared to negotiate. You may need to compromise in order to reach an agreement with your spouse.
- Be patient. It may take some time to divide your investment properties and to reach a financial settlement.
- Consider the end goal. Separations are never easy and the process can be challenging for all parties involved. Considering the end goal of reaching an agreement can be beneficial to create conditions for the most amicable separation possible.
Planning for the future
If you are facing a divorce, it is important to start planning for the future early on. This includes thinking about your real estate needs and goals. If you want to keep the marital home, you need to start saving up for a down payment and mortgage payments. If you plan to sell the home and split the proceeds, you need to decide where you will live after the divorce. Similar advanced planning applies to investment properties.
Additional tips for planning for divorce
In addition to planning for your real estate needs, there are a number of other things you can do to prepare for divorce. Here are a few tips:
- Communicate openly and positively with your spouse. The process does not need to be adversarial.
- Gather financial information, including bank statements, investment statements, and debt statements.
- Make copies of important documents, such as your marriage certificate, divorce decree, and birth certificates for any children.
- Talk to an attorney to understand your legal rights and options.
- Consider mediation as a way to resolve disputes with your spouse.
- Create a parenting plan if you have children.
Working with a real estate agent
A real estate agent can be a valuable asset during a divorce. A good agent can advise you from all standpoints regarding your real estate holdings. It’s helpful you understand your options, value your property(ies), and collaborate with your spouse to create the best outcome possible for all. If you are planning to sell the marital home or other real estate, an agent can help you market the property and find a buyer.
Contact Altamont Property Group
If you are facing a divorce and have questions about your real estate rights and options, contact Altamont Property Group today. We have experience helping clients navigate the real estate aspects of divorce, and we can help you develop a plan that meets your needs and goals.
Divorce can be a difficult and challenging time, but with careful planning, you can minimize the stress on yourself and your family. Our goal is to work closely with all to make the best outcome of a challenging situation for everyone.
Altamont Property Group
Asheville and Pisgah Forest, NC