Many couples own a piece of rental property or two. They may rent it to full-time tenants or to vacationers. Either way, it can be a nice source of extra income. If you and your spouse are divorcing, however, determining what to do with that property can be a source of conflict and confusion.
If both of you are on the title, it’s considered part of your marital property. Even if only one of you is on the title, if you’ve been sharing in paying for the maintenance, repairs, renovations and the work involved in renting it out, it’s likely still going to be deemed marital property by the court.
What are your options for dividing it?
If the property is financially worthwhile to keep and the two of you can continue to be in the business of being landlords together, you can keep the property and work out an agreement to divide the cost of maintaining it and the profits earned from it.
If only one of you is interested in keeping the property, the other spouse can buy them out. The spouse that becomes sole owner might continue to rent it or move into it themselves.
If it’s too expensive for one spouse to afford on their own and you don’t want to continue to be landlords together, you may just sell the property and divide the proceeds. This is what couples often do with their family home, as well.
Whichever way you decide to handle the situation, it’s crucial to make sure that you’re getting a fair settlement for the money and work you’ve put into the property. It’s wise to get not just experienced legal guidance, but real estate and financial guidance as well.