If you and your spouse own rental property in Brooklyn, it’s likely a nice source of income. Now that you’re divorcing, you’ll need to decide what to do with it.
While determining what to do with a rental property is typically a less emotionally fraught decision than the family home, it warrants considerable thought nonetheless. Let’s look at a few things to think about.
Is it marital property?
If the two of you are on the title, it’s clearly marital property. However, sometimes it’s not always so clear. Maybe it belonged to one of you before the marriage. However, if both of you have been putting money towards upgrades and repairs and you’ve been sharing the profits, a case could be made that you both have a right to a share of it.
What are your options?
If you determine that it’s marital property, the likely options are:
- You both sell it and divide the profit.
- One spouse keeps it and gives the other something in exchange for their share.
- One spouse buys out the other’s share and keeps it.
- You both keep it and continue to rent it out.
If you choose the latter, at least for the time being, you need to be confident that the two of you can work together as landlords.
Get it in writing
If you’ll be managing the rental property together, it’s wise to put an agreement in place that details things like who is responsible for what responsibilities, how expenses and profits will be divided and how any disputes that arise will be decided.
If you’re not both listed on the title, it may be wise to put both names on it. That and many other decisions are individual to each situation. That’s why it’s crucial to have sound legal guidance to protect your rights and your financial future.