If you and/or your spouse own rental properties, you must determine how to divide them upon your divorce. The first matter to determine is whether the rental properties were owned by one spouse prior to the marriage, or if the spouses acquired them after they were married. If the properties are separate property, then they are not subject to division in the parties’ divorce proceedings.
However, if the properties are marital property subject to equitable division in a divorce, or even partial marital property, then there are a number of ways that a couple can divide their value. If neither party wishes to retain the properties or neither can afford the properties, then the logical solution might be to sell the properties and divide any proceeds from the sales between the parties in an equitable fashion.
On the other hand, if one spouse wishes to retain the properties, then he or she typically must compensate the other spouse for his or her portion of the equity in the properties. This might be done by using other assets to compensate the other spouse, or by refinancing the properties so as to pay off the other spouse. In any case, there are a number of ways that an equitable division of rental properties can occur.
The division of rental properties can be very complex. Typically, the exact division of these types of properties will depend on several different factors, including the price paid for the property, which spouse purchased the property, whether marital funds contributed to the upkeep and/or remodeling of the property, and the fair market value of the property as of the date of the parties’ separation.
An Atlanta divorce lawyer at Shaw Law Firm LLC can help advise you about your available options and the best strategy for your divorce proceedings, including the disposition of any rental properties that you may own.
Contact us or call today to learn how Shaw Law can work with you to achieve the best outcome possible for you and your children.
Scott Shaw is founder and principle of Shaw Law Firm LLC, founded in 1995 and dedicated solely to divorce, family law and child custody matters that must be addressed and decided in the state of Georgia. Shaw Law Firm serves the greater Metro Atlanta area, particularly the counties of Fulton, Gwinnett, Cobb, Cherokee, Forsyth, Paulding, Henry, Fayette, Coweta, Newton, Walton, Bartow and Douglas. Schedule a consultation today at 770-594-8309.