What Happens With Rental Property in Divorce?
Rental property during a marriage can serve as a useful income source, but what happens in the event the couple decides to divorce? The legalities may become more complex.
Florida is an equitable division state
The equal division of marital property is required by Florida statute. Equitable implies a 50-50 divide in this case unless it would be unreasonable based on the circumstances. An equal distribution doesn’t necessarily involve a strict line in the middle regarding each asset nor does it mean the estate needs to be split in half.
A marriage settlement arrangement in which both parties concur on how to equally divide their property is also signed by soon to be former spouses. During this method, knowing the relevant law as well as what actions a judge may take is beneficial. Should the spouses be unable to reach an agreement, the marital property must be split by the divorce court.
Is the rental marital property?
Whether the rental property is marital or independent property must be decided. Independent property consists of properties possessed by a partner before marriage or inherited or obtained as gifts by them. This may be not as easy to determine as one might think. For example, if a partner possessed rented property before marriage, it would be independent divorce property, unless anything occurred to make it all or partially marital after marriage. Were marital funds used for repairs or to pay the mortgage? If so, the property may be partially owned by both spouses.
If the property is to be divided, the real estate would have to be properly valued before it could be distributed.
This update is provided by the firm Rafool, LLC. We have a strong reputation throughout Florida and we have numerous years of experience representing clients involved in complex divorce cases as well as other family law matters. Should you have any domestic or family issues, we are here to assist you by providing educated advice and skilled, professional advocacy. Call 305-567-9400 to speak with one of ourfamily law attorneys Miami or the best divorce attorney Miami.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.