How Do You Divide a House or an Investment Property?
Real estate portfolios can be among the most complex property issues to settle in a divorce involving significant assets because of the fluidity of the real estate market. Many types of investment assets can be readily liquidated and divided among parties in a lump sum settlement. Real estate, however, is subject to market forces that may make it difficult to liquidate assets in a timely manner, especially in a down real estate market. In addition, during market downturns, neither spouse in the property dispute may benefit by selling the property at a significant loss.
Real Estate Portfolios In Divorce
In some cases, one party enters into a second marriage already owning real estate investments. Often, the real estate portfolio will be protected by a prenuptial agreement stating that the real estate will retain characterization as separate property in the event of divorce. A spouse, however, may litigate the validity of the prenuptial agreement to prove that the disputed real estate increased in value as a direct result of contributions made during the marriage. The appreciated value of the separate property, therefore, may be characterized as marital property and subject to equitable distribution in the property settlement.
Marital property divisions involving real estate portfolios are complex and require an experienced attorney to address concerns relating to property valuation, appreciated value, tax obligations, and debt.
To learn more about real estate during divorce, you can read our article that we have on the topic: Attacking Real Estate and Valuation Experts in Divorce.
Contact Our Real Estate Divorce Attorneys in Missouri, Illinois, Kansas, Oklahoma, and Nebraska
When dealing with a high-asset divorce, contact our lawyers online or by phone to schedule a confidential consultation. Our firm has convenient locations throughout Missouri, Illinois, Kansas, Oklahoma, and Nebraska in cities such as St. Louis, Chicago, Kansas City, Springfield, Columbia, Wichita, Topeka, Oklahoma City, Tulsa, Omaha, Lincoln, and beyond.