Divorce Planning: The Top 5 Things to Know About Your Properties Before Getting Divorced
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Top 5 Property Division Factors to Consider
When it comes to divorce and property division, one of the biggest mistakes people make is entering into negotiations without first accurately assessing current property assets. Successful divorce planning begins with careful research. If you are in the process of getting divorced, it is important that you protect yourself by understanding the particulars of your individual situation.
Not all property is created equal, so you will need to look into the details that apply to the property you and your spouse own.
As a starting point, consider the following five factors during your divorce property division:
Identify the type of real estate you own and the basis of each property.
Do you own a personal residence, land, investment or commercial properties or some combination of these? And what is the basis - the original price paid for the property, plus major improvements (NOT ordinary repairs and maintenance) plus selling costs (commissions, closing costs, etc.).
Determine the ownership history for each piece of property.
Is each piece of real estate marital or separate or some combination of both? How is the title held now – jointly or in only one name?
Establish how long you have held the property.
This is an important question to know to determine if there are any capital gains tax issues.
Research what debts, such as loans and tax liens, the property might have.
Most everyone thinks of the mortgage and possibly a second mortgage, but there could be other debts against the property you may have forgotten or possibly some of which you were never aware.
Calculate the income you will need to pay for and maintain the real estate property during the divorce and afterward.
Be sure to take both major repairs and ongoing costs to properly maintain the property into consideration.
By engaging in careful divorce planning with the help of an expert in divorce and property division, such as a Certified Divorce Financial Analyst, you can avoid some of the common financial pitfalls of getting divorced.
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About the Author
Lisa C. Decker is a discreet problem-solver and the founder and owner of Divorce Money Matters. Her passion and intense desire to help others has always been her guiding value and the primary reason for adding this service to help her community.
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