Real estate remains a traditional investment asset that could drive up a portfolio’s value. Married couples might not discuss a real estate investor’s assets during the union, but questions will likely arise during divorce proceedings. Before entering a New Jersey family court, one spouse may wonder how to protect their real estate assets.
Real estate holdings and divorce
Appraising the real estate’s value might be the priority for divorcing couples. Perhaps an asset is underwater, meaning loans exceed current market value. While one spouse may wish to weather the storm, the other spouse could want nothing to do with the property. So, whoever wants an underwater property might get it during divorce settlement talks.
Of course, things may turn in a different direction when the real estate holdings have significant value. Both parties might want the property, but owning it and affording it would not be the same thing. One spouse may give up any claims on the property if it proves too expensive for their budget.
Sometimes, the appropriate decision involves liquidating the property and dividing the proceeds. When looking to start anew after a divorce, eliminating real estate holdings and their related costs and expenses might be preferable. Spouses may choose to take advantage of current market conditions and just sell.
Other legal issues to consider
Those hoping to avoid any troubling negotiations during a divorce may want to have a prenuptial agreement. Those already married are not necessarily too late. A post-nuptial agreement could serve the same purpose.
A spouse might find real estate derived from gifts or an inheritance comes with protections. Such property might be considered non-marital property. The particulars of a specific divorce case could determine if this is so.