During divorce proceedings, couples have to make choices about how they divide their property. The more they have purchased and accumulated throughout the marriage, the more difficult it may be to settle property division matters. High-value assets, in particular, can be a challenge for people to address. Spouses may disagree about what property is worth and how to fairly handle it during the divorce process.
Real property holdings are often among the most valuable assets people own. Spouses may own their own home and a beach house. They might also have acquired multiple investment properties over the course of the marriage. Some of those properties may even be in other states, as is the case with snowbirds who split their time between different areas.
How can those with numerous real properties in their marital estates effectively address those holdings during divorce?
Identify and value each property
The creation of an inventory of assets and the disclosure of personal holdings are crucial steps during divorce proceedings. Couples need to create robust lists outlining all of their resources. They also need to estimate what those assets are worth. Appraisals can be an important part of that process, especially if the couple has investment properties in other states. A real estate professional may need to help set the fair market value for each property.
Set priorities for real property division
Navigating a complex divorce is easiest when spouses set specific goals. Frequently, emotions can get in the way of people achieving the best possible outcome. Therefore, it is often beneficial for those preparing for divorce to establish clear goals for specific matters.
In a scenario involving multiple real property holdings, one spouse may want to retain specific properties. Identifying the holdings that are most important for the future can make it easier for people to compromise on other aspects of the property division process.
For some people, the goal isn’t the retention of property but rather the receipt of an appropriate amount of equity. The sale of certain properties or mortgage refinancing by the other spouse can ensure that the person giving up their interest in marital real estate holdings can receive appropriate amounts of financial compensation.
For some spouses, the goal might be to use accumulated equity to wipe out marital debts, thus allowing them to move forward with a clean slate. The sale or refinancing of properties can help achieve that goal as well.
People who are pragmatic in their approach to complex property division matters can keep the focus on their long-term recovery from divorce rather than getting bogged down in decisions about each separate asset. Developing a workable plan for addressing multiple real estate holdings in an upcoming divorce can help people keep their focus on the big picture.