What Happens To The Rental Property In Divorce?
Married couples often have many ways of earning income for their household and one of these is investing in rental property. Whether it is an entire apartment building or just one unit that is used as an Airbnb, rental property can be a very lucrative investment.
When a couple gets a divorce though, that property is subject to division just as any other. The manner in which it is divided on the other hand, has the potential to become much more complex. If you are going through a divorce and it involves rental property, below are some guidelines that may suggest how you and your spouse will divide it.
Reaching an Agreement with Your Spouse
Like all other property division issues, you can reach an agreement with your spouse on how you will divide the rental property. One spouse may keep it outright and become responsible for the maintenance, property taxes, and other issues that involve the property. Or, you and your spouse may even decide to continue co-owning it while dividing the responsibilities of upkeep, as well as the income it generates.
Reaching an agreement with your spouse is very beneficial. It puts the control back in your hands, which often makes it more plausible that you and your spouse will abide by the terms of your agreement. Unfortunately, you and your spouse may not reach an agreement and when that is the case, the matter will go to the court.
Factors the Court will Consider
Allowing the court to divide property in any divorce always comes with some risks because judges are able to use their own discretion when making these decisions. A judge will consider many factors including who made the most contributions to the rental property, and whether it makes sense to allow one person to keep it entirely or whether the property should be sold with both spouses dividing the profits.
A judge will also determine whether the property is considered separate or marital property. Even when one spouse owned the investment property prior to the marriage, this does not necessarily make the investment marital property. If the proceeds used from the investment contributed to the household, a judge may deem it marital property. Also, if the household income was used to pay the mortgage or property taxes on the investment property, that is another factor a judge will use to determine that it is marital property.
Clearly, dividing investment property is no easier than dividing any other type of property in a divorce. You should always contact a Florida family lawyer that can advise on how the property may be divided, and that can help you reach an agreement with your spouse.
Call Our Family Lawyers in Florida Today
If you are going through a divorce that involves the division of complex assets, our Tampa divorce lawyers are here to help. At All Family Law Group, P.A., our seasoned attorneys can advise on the property division laws of the state and help you obtain a settlement that is fair. Call us today at 813-672-1900 or fill out our online form to schedule a free consultation. Se habla Español.