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Know your options when handling real estate in divorce

Divorce is the worst. While you might suffer from some of the emotional damage caused by dissolving your relationship with your spouse, you might be just as concerned, if not more so, about the financial implications. This is understandable given the fact that the property division process can shape your financial future for a long time to come. With that in mind, you need to enter divorce negotiations and litigation with a clear strategy. The first step is merely knowing your options when it comes to your assets.

Dealing with real estate

This week, let’s briefly look at real estate, whether commercial or residential. These assets are probably amongst the most valuable in your marital estate, which might drive you to seek an outcome where you retain possession. But is that the best option for you? Consider the paths you could take:

  • Buy or sell the property to your spouse: This option requires one side to come up with a lot of cash, which can put the seller in a nice position post-divorce, at least from a cash flow perspective. Coming up with that money can be hard if you’re the buyer, and you need to be cognizant of the ongoing costs associated with keeping the property.
  • Barter for it: This option is pretty common. One party wants to keep the property and is willing to give up other marital assets to try to make the trade fair. With this option, just make sure that you’re getting a fair deal by knowing the true value of the assets in play.
  • Sell to a third-party: This is a viable and preferred option for many. It can provide an infusion of cash, sever responsibilities to the property, and provide a clean break with your spouse. Just make sure you’re selling the property at the right time and for the right price.
  • Keep it: You could choose to continue to co-own with your spouse, which would be easier to do with commercial property than a residence that the two of you used to share. This option can help generate income and build equity, but you have to be comfortable dealing with your spouse post-divorce.

Don’t be afraid to fight for what is best for you

Property division can be a trying process in your divorce, especially when you try to find an emotional balance through it all. This might tempt you to be agreeable to simply speed up the process. Don’t cut yourself short. Instead, be prepared with the strategy you need to protect your financial future.

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