If you and your spouse acquire rental property during marriage, then it is considered marital property regardless of how the property is titled. If divorce ensues, you and your spouse have several options for dividing your rental property.
Options for Dividing Rental Property
Sell the Property
If neither of you want to keep the rental property, you can both agree to sell the property and split the profits. However, tax implications of a sale must be considered.
Offer an Equivalent Asset
If one spouse wants to keep the rental property, the spouse who does not want the property can keep a marital asset that equals the value of the rental property. However, tax implications of a sale must be considered.
Operate the Rental Property Together
If you and your spouse want to continue operating the rental property and believe that you can work together after the divorce, you can then set up a legal agreement to manage the property and divide the proceeds. We recommend that you both ask your divorce attorneys to workout details on a property management agreement. A court cannot require parties to retain property in
You and your spouse are not limited to these options. You may have other ways of dividing your rental property that are unique to your personal circumstances.
If you are not sure about how to divide your rental property, contact Shapiro Family Law. One of our property division lawyers can discuss your available options based on your specific circumstances. Call our office for more information.
Have Your Rental Property Appraised
Regardless of the option you choose, you may want to have your property professionally appraised before finalizing your divorce. Shapiro Family Law can recommend real estate professionals who can appraise your rental property. Having your rental property
If you or your spouse do not want your rental property appraised, you would then have to reach an agreement on value; this is not recommended.
Handling Rental Property Issues
While you and your spouse decide howto move forward after the divorce, you may also have to make decisions on what to do should issues, such as tax or insurance payments for the property, come up while the divorce is pending. Should one spouse pay or both spouses pay?Also, who pays for emergency repairs to the property during the divorce?
Making these and other decisions about your rental property may not come easily if you and your spouse are having difficulties agreeing on other divorce-related issues. Having a divorce lawyer to advise you, however, may help take the pressure off as you go through the divorce.
Handling Rental Property Income During the Divorce
What do you do with the rental property income you receive while you and your spouse work through your divorce? One option is for you and your spouse to set up an account to deposit the rental income. You can both agree not to spend any of the money during the divorce. The only exception would be for rental property expenses, but in that case both of you must agree to notify each other prior to withdrawing from the account.
Property is Distributed Equitably in Colorado
If you and your spouse cannot make decisions over dividing the rental property, the judge presiding over your divorce will. It is possible for the judge to have the property appraised, have the house sold, and equitably – not “equally” – divide proceeds from the sale.
Colorado is an equitable distribution state which means that property is divided fairly in a divorce. Given this, it is essential to have a divorce lawyer who can make sure that you receive fair distribution of your marital property during your divorce.
Call Us Before Making a Rental Property Division Decision
If you are not sure about how to divide your rental property during a divorce, contact Shapiro Family Law. Our family law attorneys have been handling challenging marital property division issues for years. We protect our clients’ legal interests and ensure that they receive their fair share of their marital property.
Our family law attorneys can help you with other divorce-related issues you may be facing, such as child support, child custody, and spousal support. We help families in the Denver area and throughout Colorado navigate the sometimes difficult path of divorce so that all will receive an equitable outcome.
If you want attorneys who can help you get through a divorce, turn to Shapiro Family Law. Call us today at 303-695-0200 to speak with one of our family law attorneys.