If you are going through a divorce, one of the biggest issues you and your former spouse will need to resolve will likely involve dividing assets and debts. Some assets are easier to divide than others. Bank accounts might be easier to split than a vacation home or investment property, for example.
If you own a vacation home or investment real estate, you and your former partner will need to make decisions about how these assets will be divided. You may have a range of options when it comes to dividing assets, but the solution that’s right for your family will depend on your needs, your goals, and your other assets. Have questions about how to divide investment real estate or a vacation home during a divorce? Reach out to the Aikin Family Law Group, an Orlando, Florida divorce law firm today.
Options for Dividing Real Estate, Investment Properties, and Vacation Homes in Your Orlando, Florida Divorce
Before splitting any real estate assets in your divorce, it is important to distinguish between marital property and community property. If investment real estate, vacation homes, or other real estate assets were purchased by one spouse before the marriage, these assets might be considered separate property in your divorce and not subject to division. However, if property was purchased or acquired during the marriage, or if a property contributed to marital income, or if improvements were made on a property that increased its value, the property might be considered community property in your divorce. A divorce lawyer like the attorneys at the Aikin Family Law Group in Orlando, Florida can review your assets, review prenuptial agreements (if they were drafted), and help you understand your rights and options, when it comes to shared property and separate property.
If real estate property is subject to division during your divorce, you and your former spouse have several options. You can sell the property and split the proceeds. You can appraise the property and buy out your partner’s share. Or, one partner can refinance the mortgage and take responsibility for the mortgage. Other options can include both parties keeping the property in both their names and both parties receiving rental income and being responsible for upkeep, but in these arrangements it is often wise to put in writing each party’s responsibility and how proceeds from the property or properties will be split. If you choose to sell a property that was used as a primary residence, you might be able to enjoy additional tax breaks.
If you and your partner have other assets like investments or retirement accounts, sometimes couples can negotiate a split of total assets that also considers the value of these assets. For example, if investment real estate is found to be similar in value to stock investments, couples may be able to negotiate a settlement that fairly compensates both parties, with one party receiving the real estate and the other party receiving the other investment account. However, when considering these kinds of divorce deals, couples need to carefully consider the tax implications of these investments. For example, how much in taxes would be owed on a property if it were to be sold versus the tax burden for say, a retirement account or other investment? Some types of real estate may qualify for certain tax breaks when sold, so you may want to speak to your financial planner and accountant when considering the value of your assets and the tax burden of these assets. Sometimes the tax burden can lower the value of some of these investments, so consulting with a qualified divorce lawyer and sometimes with a financial planner as well, is often wise.
Have questions about how to divide property and real estate in your Orlando, Florida divorce? Reach out to the Aikin Family Law Group today. Our family law attorneys can review your situation, take the time to understand your goals, and assist you with your divorce.
Splitting Assets in Your Orlando, Florida Divorce
The decisions you make regarding important assets like real estate, vacation homes, and other investments can have an impact on your life for years to come. Splitting assets like real estate and vacation homes can be particularly challenging because these assets are not liquid assets like a bank account. You may need to make appraisals, set up special financial instruments, like a trust if you plan to keep the property in both parties’ names, or sell the property while you go through your divorce. The Aikin Family Law Group is an Orlando, Florida divorce law firm that works closely with families who have questions about how their divorce might impact their financial life. Contact our firm today to learn more. Or, contact USAttorneys.com to get connected with one of the family lawyers at the Aikin Family Law Group today.