If you are going through a divorce, understanding what will happen to the assets you and your spouse share is essential. While some things, like a bank account, are simple to divide, other assets pose more of a challenge. When it comes to rental properties, you and your spouse have a few different options on how you can handle them when separating. The following blog explores what you must know about these circumstances and why it’s in your best interest to enlist the assistance of a Nassau County property distribution lawyer when you are going through a divorce and you have real estate involved.
What Constitutes Marital Property?
When you and your spouse get married, it’s not uncommon to mingle and share your assets. As such, any assets obtained during marriage are deemed marital propeprty. These are subject to division upon divorce. Assets owned before marriage are considered separate property unless they are comingled with joint property. For example, if you own a business before getting married, but you use money from your joint bank account with your spouse to fund business ventures, the company will become marital property.
New York is one of the majority of states that adheres to the equitable distribution of property statute for divorcing couples. Essentially, this means any asset deemed marital property will be divided according to how much each spouse contributed to the marriage as opposed to an equal 50-50 split.
What Options Do Spouses Have When Dividing Rental Properties?
If you and your spouse are divorcing, you may be able to determine how you will divide your rental properties outside of court. Generally, there are three options you can opt for.
The first option some couples may choose is to keep the rental property and split the profits gained between both spouses evenly. However, this may not be a viable option, especially for couples who are not on amicable terms, as it requires joint management and communication.
A standard option is for one spouse to “buy out” the other spouse. When a property is valued and divided between two spouses, one spouse will pay the other to obtain sole control over the property. Similarly, the spouse who wants the property may relinquish an asset of equal value to make the division more fair.
Finally, some divorcing couples will simply sell the property and divide the profits from the sale between each other.
Whether you and your spouse can agree on a way to divide your rental property or not, it’s in your best interest to enlist the assistance of an experienced attorney as soon as possible when getting a divorce. Unfortunately, some assets can be complex. As such, having a lawyer from Barrows Levy help guide you through this process to protect your assets is vital. Contact our team today to learn how we can help you.