One of the most stressful issues in any divorce is the division of property. Couples must divide all their debts and assets, so when a couple has a high net worth and a lot of property, this can take a long time. There are a few different strategies for dividing assets like real estate in a divorce. Being aware of them going into the process can help you make more informed decisions.
Four main strategies
There are several strategies that couples can pursue when dividing real estate during a high-asset divorce. The first is to sell the assets and split the proceeds. This ensures that everyone feels they got a fair share in the deal.
Alternatively, one spouse may take the house in exchange for not pursuing a different asset. For example, one party may get the house in exchange for not pursuing the other’s retirement plan. This is another way for everyone to feel like they’re getting their fair share.
Another way to pursue dividing the real estate is for one person to buy the other out. Typically, the person who wants the house will need to refinance it to do this. This involves a little more risk than other strategies.
Finally, the couple may decide to postpone selling the house but agree to do so later. This can happen when the market is bad or when they have young children who are still in school. It’s important to be very clear about how mortgage payments will be handled in this kind of situation.
Seeking professional guidance throughout a divorce
The most important thing in any divorce is to communicate effectively with your attorney. A lawyer may explain the pros and cons of every option for your specific situation in order to help you find the best solution.