Rental properties are like any other asset in a divorce. They need to be split up when all of your property is being divided up, and you want to make sure that any arrangement that is made is fair to you. Rental properties can be a good source of income and a fallback if times get rough, so it is especially important that you get your fair share of their value. Our Sparta property distribution attorneys will do everything that they can to help you fight for a fair deal.
Are My Rental Properties Separate or Marital Properties?
The first and most important thing that needs to be established is whether or not the rental properties are considered marital properties. A marital property is something that is owned by you and your spouse, and these are the properties that must be split up during the divorce process. A separate property is something that is only owned by one of you.
So if you had a rental property before getting married, your spouse should have no claim to it. If your spouse inherited property and it is only in their name, it is also likely to be considered separate property. If you and your spouse purchased homes, fixed them up, and used them as rental properties, then they are marital assets and must be distributed equitably along with the rest of your marital property.
What Are Some Common Ways to Split Up Rental Properties?
There are a few ways to deal with rental properties in a divorce. Some couples choose to:
- Sell off the properties and split the proceeds
- Have one spouse buy the other out of their stake in the property
- Give one spouse the rental properties and the other spouse marital assets that would be equal in value
What If My Spouse and I Both Want to Continue to Collect Rent?
As we mentioned, rental properties can be a good source of income and that extra money can continue to reliably come in for years and years as long as you maintain the properties and continue to have tenants. This is why it is not surprising that spouses end up wanting to keep their properties as long-term investments instead of cashing out one time by selling a stake in the property or the property itself.
If you and your spouse both want to keep the rental income rolling in and you can keep things mostly civil, establishing an LLC with 50/50 ownership of your properties is one idea that can work. Now you can both continue to collect that extra income each month.
Schedule Your Consultation
If you are going through a divorce and you want to be sure that you are getting a fair share of the property you and your spouse shared, having an experienced divorce lawyer on your side can help. Contact Paris P. Eliades Law Firm, LLC and schedule a consultation today. We would love to tell you more about how our team can be of assistance.