A Focused Approach To Divorce And Family Law

Who keeps investment properties in a divorce?

On Behalf of | Jan 31, 2025 | Divorce, Property Division |

Investment properties often hold significant financial value. In Nebraska, understanding how the court handles these properties during a divorce can help both parties reach a fair and equitable resolution.

Who owns your investment properties?

The first thing to figure out is whether the investment property is marital or separate. Separate property is something one spouse owned before getting married or something they got as a gift or inheritance. If a spouse had the investment property before the marriage or received it as a gift or inheritance, it might be separate property.

Marital property includes anything either spouse got during the marriage, with a few exceptions. If the couple bought the investment property during their marriage with money they earned during the marriage, it is usually marital property. The court will divide this property equitably. The court may consider many things during this process:

  • Economic circumstances: The court looks at each person’s financial situation, including how much money they can make and what they need.
  • Contributions to the property: The court thinks about who paid for the property, who improved it, and who took care of it.
  • Non-monetary contributions: Contributions like taking care of the home or raising children also matter in dividing the property.
  • Length of the marriage: Usually, the longer the marriage, the more likely the property is as marital property.
  • Future financial prospects: The court also looks at each person’s future chances of making money and getting assets, which might include income from rental properties.

How might you handle your investment properties?

Fair outcomes for property division may look very different for each couple. In many cases, couples might agree to sell the investment property and split the proceeds. This can be a straightforward solution when neither party can buy out the other’s share or manage the property independently.

However, if one person wants to keep the property, they might need to negotiate a buy-out. This could mean using money from their portion of the couple’s savings. hey might also give up their claim on other shared assets like the family home to create a fair solution.

In some situations, couples may even continue as co-owners of the property. This requires a great deal of planning and clearly outlining expectations for maintenance costs and other expenses. For example, a couple may choose to remain co-owners after their divorce so that they both can benefit from the rental income it generates.

Given the complexities involved in dividing investment properties during a divorce, seeking legal advice is essential. A family law attorney can provide guidance tailored to your specific circumstances, help negotiate on your behalf and ensure that the division of your property supports your financial interests.

Divorce is a challenging process, and the division of investment properties can add an additional layer of complexity. By addressing these aspects thoughtfully, both parties can move forward with clarity and confidence in their post-divorce financial situations.

Archives