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Dividing investment properties during your divorce

On Behalf of | Jun 28, 2022 | Divorce

You and your spouse have several investment properties that you collect an income from. You have tenants who live in a few of the properties and businesses who rent some of the others.

During your marriage, these properties have really helped you increase your net worth. You have plenty of assets thanks to the extra income, and you’re excited to see how the investments continue to grow.

That being said, since you’re now going to go through a divorce, you’re not sure what to do with these properties. How can you protect your investments and also be fair to your spouse?

Consider state law first

In California, the state expects you and your spouse to divide your marital property equally. The reasoning behind this is that it takes two people to be in a marriage, to invest in each other and to raise a family. Your assets might include a sizable portfolio of properties, but if those were purchased during your marriage, you may need to divide them as close to 50-50 as you can.

You can negotiate to get more out of your divorce

In community property states like California, you will be expected to divide your property equally, but that doesn’t mean that you can’t work out a different arrangement with your spouse. On top of that, though you’re expected to divide the value of your property as evenly as possible, that doesn’t necessarily mean splitting up the investment portfolio. You have other options, too, like buying out your spouse’s share or selling assets to divide the profits.

Dividing property can get tricky, but there are solutions available

While it can be tricky to come up with the right solution for dividing your property, there are different options available that might work for you. It’s a smart idea to learn the legal options you have first and then to start negotiating with your spouse to see what you would well for both of you. You may find that there are simple solutions that leave you both satisfied as you walk away from your marriage and live independently from one another again.