When a couple divorces, one of the most significant decisions they have to make is what to do with their shared property. This can be especially difficult when that property includes a rental property. Moreover, it’s important to remember every situation is unique and needs to be handled accordingly for justice to prevail among the couples. Couples can ensure that their rental property is dealt with fairly during a divorce by working together and communicating openly.
Thus, if you are considering a divorce, it is essential to consult with the best law firm, FIDE Law, which can help you understand your rights and options. Here’s how rental properties are handled in a divorce and what you need to know if you’re going through one yourself.
If one spouse owns a rental property before the marriage, that spouse will usually keep the property in a divorce. However, if you jointly own a rental property, you will have to decide either of the following four options:
1. Jointly Manage the Property
If you own the rental property together, you will both be responsible for managing it. This includes making decisions about repairs, tenants, and all other aspects of owning and operating the property. Moreover, all the benefits and income generated from the property are equally shared once all expenses have been accounted for.
2. Sell Your Rental Properties
If one person wants to sell and the other doesn’t, this can lead to conflict, and you need our help. Moreover, in some cases, if one spouse cannot afford to buy out the other’s share of the property, they may have to sell it. If there are any mortgages or loans on the rental property, both spouses will be responsible for paying them off. Once you decide to sell the rental property, you will need to agree on a price to sell and divide the money.
3. Exchange Assets for Rental Properties
Another option is for each person to exchange assets of equal value. One spouse keeps the rental properties in exchange for money, stocks, or other investments. This can be a fair way to handle things and avoid any potential disputes down the road. Additionally, whoever keeps the rental property will also be responsible for all future benefits, repairs, and maintenance costs.
4. Divide the Rental Properties
Lastly, the couple can agree to divide the rental properties amongst themselves. Splitting properties can be done in several ways, such as by assigning each person a specific property or splitting them up based on their value. It’s important to remember that these decisions should be made with the help of our professional attorneys so that everyone understands their rights and obligations.
If you’re going through a divorce and need help figuring out what happens with your rental property, contact us today. We can guide you through the process and ensure your rights are protected. Moreover, we would be happy to answer any of your questions and legally help you get value from your properties despite the divorce.
Apart from family issues, other areas that we can be of benefit to you that need legal intervention are debt, immigration, employment, estate planning, and criminal issues.