Understanding Divorce and the Fate of Your Real Estate Interests

Understanding Divorce and the Fate of Your Real Estate Interests

Real estate is one the largest assets that a married couple shares, and during a divorce, it can become a significant point of contention and confusion. As you approach separation, it is important that you fully understand the worth and ownership of both your primary residence and any additional real estate holdings. These steps will ensure that both parties receive appropriate compensation for their real estate interests. As such, there are a number of things that you want to keep in mind as you begin to divide your property.

 

Have Your Property Appraised

Before dividing assets, it is essential that you and your spouse understand what they are worth. Therefore, you need to consider hiring an impartial appraiser to accurately assess your property. It is pertinent to complete a thorough assessment of both your home and any additional investments. During the process, appraisers will look at the values of comparable homes and will note any additional unique features that could affect its value.  Once you know what the house is worth, you can begin to negotiate a settlement.

 

Consider When the Property Was Purchased

Once you have discovered the value of your property, you will then need to consider who has immediate claim to the assets. If you purchased a property before marriage, you may possess sole ownership. However, if you and your spouse lived in the home together prior to divorce, there may be both separate and joint interests. This may also be true if you used an property as a primary source of marital income.

 

How to Divide Property Without Conflict

If your property is deemed a joint asset, you will then need to figure out how to approach dividing it. The easiest and most efficient approach is to sell the real estate and then split the profits. However, deciding how much should go to you and your spouse can be a difficult discussion. It is important that you discuss the percentage of profit each of you will receive before you sell your real estate. Lawyers or mediators can help guide this discussion to avoid extended dispute.

 

Deciding to Keep the Property

In some cases, you or your spouse may want to keep the property. If this is the case, you want to still make sure that the property is accurately appraised, and the spouse that wants the home will need to buy the other person out. This will ensure that both parties have received their portion of the asset.

Divorce can be a difficult process, but you want to make sure that you are receiving your fair share of your real estate interests. As such, it is important that you approach negotiations with sound knowledge on the process. Lawyers and mediators can be a substantial help in making the process easier while ensuring you get your fair share.