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What Will Happen to Investment Properties in Divorce?

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What Will Happen to Investment Properties in Divorce?

When facing a divorce involving complicated or high-value properties, questions about asset division can feel endless and overwhelming. Investment properties add another layer of complexity to an already challenging process. When investment properties are recognized as marital property, they must be divided as part of divorce proceedings. The good news is that there typically are several options available for handling these valuable assets.

The main choices for marital investment property division include:

  • Division based on current or predicted value: Split properties according to their present market worth, or consider future market trends and potential appreciation
  • Sell and divide proceeds: Liquidate properties and split the profits equally
  • Continue joint ownership: Maintain shared ownership if both parties agree
  • Court decision: Let a judge determine division, if no agreement can be reached

Our team at Reifman Law Offices recognizes the significance of high-value assets in divorce. With experience handling the division of complex marital assets during divorce, we can help you determine the right path forward for your situation.

Options for Dividing Investment Properties

Division by Value

There are two means of dividing investments by value: by current value and by predicted value. Using the current value is a straightforward approach, evaluating each property at its current market value. You and your spouse divide the properties to achieve an equal split based on today’s worth. This method works well when your investment portfolio has remained relatively stable.

An approach based on predicted value, meanwhile, considers market trends and anticipated changes in property values. By factoring in expected appreciation or depreciation, you may achieve a more equitable long-term division. However, market predictions can be unreliable, as economic shifts or similar unexpected events could upset even the most careful forecasts.

Sell and Reinvest Profits

Another option involves selling all investment properties and dividing the proceeds. This approach provides each party with liquid assets that they can reinvest, save, or spend as they choose. It could, however, reduce opportunities for future appreciation depending on how the profits are used.

Continue Joint Ownership

Some divorced couples may choose to maintain joint ownership of their investment properties. This arrangement can work when both parties remain civil and can cooperate on property management decisions.

If you choose this path, establish clear agreements regarding major future decisions, such as sales and profit distribution. Document these arrangements legally to prevent future disputes.

Court Decision

When spouses cannot agree on division methods, a judge will make the decision. Courts typically favor straightforward solutions rather than innovative approaches. This option is most likely to be a last resort, as it removes your control over the outcome and may not reflect your preferences or circumstances appropriately.

Professional Guidance Can Help You Decide

Similar to the decision to invest, the division of investment properties involves significant financial and legal considerations. Property valuations, tax implications, and market conditions could all affect the best approach for your situation.

The division method you choose today will impact your financial future for years to come. Working with experienced legal counsel ensures you understand all options and their potential consequences.

At Reifman Law Offices, we understand the challenges of complex property division during divorce. Our commitment extends beyond legal representation to help you navigate every aspect of this transition with confidence. We strive to provide compassionate guidance while protecting your rights and financial interests.

Contact us today to discuss your concerns about investment properties in divorce and determine the best path forward for your unique situation.

At Reifman Law Offices,

we will take the weight of dealing with family legal issues off of your shoulders.
Call Us 847-229-8433

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