What to do in a divorce with jointly-owned investment properties

On Behalf of | Sep 15, 2021 | High Asset Divorce |

Couples looking to diversify their investment portfolios or generate passive income may buy real estate together. Unimproved land and residential properties alike offer opportunities for ongoing income or a return on the investment when you sell the property.

If you acquired multiple pieces of real property during your marriage, those valuable assets can quickly complicate the process of dividing your property. What will happen to those investment properties during your Colorado divorce?

There are multiple ways to handle properties other than your marital home

Handling a marital home in divorce often requires a bit of nuance and negotiation. Emotional attachment and a desire for stability for children can impact the best way to handle the family home.

Real estate owned for financial purposes may be a bit easier to handle. There won’t be concerns about your living arrangements or memories complicating the process. Instead, the financial value now and in the future will probably be the biggest concern. What you paid for the properties is likely no longer an accurate representation of their values, as prices across Colorado have more than doubled in the last 10 years. Homes in certain areas will likely continue to increase in value due to ongoing demand.

You can have each property appraised for its fair market value and divide your holdings that way. Splitting them up based on how much income they generate is another approach, as is dividing them based on location. Some couples may also decide that they want to sell all of their real property and just divide the proceeds.

Thinking about your financial and career plans after the divorce can help you negotiate a stronger property settlement in a high-asset Colorado divorce.