Three Tips to Protect Your South Florida Real Estate Assets During a Divorce

Palm Tree Cash Home Buyers Divorce paper with ring for decorative purposes only

Divorce is not something you want to go through, and it is far from pleasant. It does happen. The divorce process can be complicated and often ugly, especially for real estate assets.
While you can hope for and work towards the best outcome, it is important to be prepared for the worst.
This is especially true if you’re attempting to safeguard your assets. We offer these 3 tips to help you protect your real estate assets in South Florida during a divorce.

1. Make the Necessary First Steps

While emotions can run high during a divorce, you must keep your head clear and take the steps necessary to think rationally. These are some steps that you can take to help protect your real estate assets during a divorce. . .

Prepare Before Filing

Remember that divorce settlements can be divisible. To protect your assets and gather evidence to support any claims you make in court, take steps before you file for divorce.

Inventory Non-Marital Assets

Gather all supporting documentation. This simply means you should collect all your real estate records before your spouse gives you the divorce papers.
Make sure to take the time to make a detailed list of all assets you have owned before your marriage.

Get an Accurate Valuation of Your Real Estate Assets

Most people forget about the tax implications of investment, such as deferred tax payments on retirement accounts.
A penalty could be imposed if you withdraw too early. These factors should be taken into account when valuing property and investments.

Choose Battles Wisely

It is a simple fact that not all things are worth fighting for, especially regarding the cost of legal representation. Before you file a petition, consider the attorney fees against the asset’s value.

Consider Hiring a Mediator

Divorces can be expensive and not always the way you want them to go. A mediator is a cost-effective alternative to attorney fees and can facilitate the divorce agreement.

2. These Tactics Can Be Used

You can do three things to help protect your real property assets during a divorce. These are the three main things you can do to protect your real estate assets during a divorce. . .

Make Equity Work for You

Negative equity is a great way to protect your real estate assets in South Florida.

You can maximize your equity to protect real estate assets that you own and have bought individually.
The real value of a property is often determined by equity. Divorce attorneys can determine how much should be divided between divorcing spouses by subtracting any loans attached to the property.
Protecting your assets is best by preserving negative equity.

Evidence that Assets Are Premarital

Unless you can prove otherwise, assets in a marriage will be considered marital property. You must prove that the assets were acquired before the marriage.
The court may find that the asset is only partially non-marital if you fail to do so.

Set up a Land Trust

You can put any real estate assets you have acquired before marriage into a trust. This will protect your assets from creditors and other litigators and “can protect you against losing your property during a divorce.”

Here’s how it works . . . 

A land trust provides protection and privacy for real estate ownership. The land trust will become the legal owner of your estate.
Your name will not be listed in public records that show property ownership. Only the trust name will be valid.”

3. The Process of Selling Real Estate Assets in a Divorce

Sometimes, both spouses agree to sell their property and split the proceeds in divorce proceedings. You need to ensure that your share of the real property assets is protected in this instance.

Set an Asking Price

It is crucial to price real estate correctly and in line with market value. Call 954-278-9353 to speak with a local agent in your area about pricing. Working with a local agent who knows the market is highly recommended.

Get ready for the Showings

Getting a house ready is the most difficult part of selling a house. You will need to do minor repairs and painting before the house can be shown.
Also, you must agree on the source of the funds. The agent can stage the house if both you and your spouse have left before you put it on the market.

Review Offers

You’ll need to meet together to discuss any offers from potential buyers. People are often driven to settle for the quickest possible divorce and will accept less desirable offers.
When reviewing offers, make sure you rely on your agent’s expertise.

Divide the Proceeds

The process’s final step is dividing the proceeds from the sale. “In general, this shouldn’t be too complicated – the escrow firm can distribute the money after you have paid all your obligations and made any other payments.

The only problem is usually when one spouse has been making post-separation mortgage payments.
This spouse may have been decreasing the principal amount and increasing equity. This could increase the amount that will be divided among the spouses after all closing costs and obligations are paid.
It is important to adjust the distribution to reflect the contribution of the paying spouse.

An Important Aspect of Protecting Real Estate Assets

Working with an experienced agent in the South Florida will make it easier for you and your spouse to sell your property. The agent will be familiar with the market and can help you negotiate the best deal.
Contact us at 954-278-9353 if you want to protect your real estate assets in South Florida during a divorce. PalmtreeCashHomebuyers will help you contact us today.

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