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What will happen to your rental properties in a divorce?

On Behalf of | Jan 27, 2023 | Division Of Assets

Divorcing is tough. It may be a legal process but it’s also one that’s full of emotion and is personal to everyone involved. When it comes to dividing up your things, it can turn into a battle when you can’t agree.

When you’ve accrued a number of rental properties during your marriage, this is likely to have significant value and may have been how you both planned to fund your retirement. So, what will happen to your properties when you divorce? Is it for the court to decide and can you have your say?

California is a community property state

What does this mean for you? Any property that was acquired by you and your ex-spouse while you were married is considered to be community property. If the matter goes to court, a judge will make a decision that ensures the property owned is split equally between parties.

The matter doesn’t need to go to court

If you and your ex-spouse can agree on what should happen to the properties, you don’t need a court to intervene. It’s important to note, however, that you will still need a judge to approve any agreement you come to. This is so that a judge can adjudicate over the process and make sure the division of property has been done equally.

Some examples of how you could work together to split the property equally include:

  • Keeping the property and splitting any profits between you 50/50
  • Selling up and splitting the proceeds
  • When you have a property portfolio you can split the properties up so that you each have a share of equal value

Your particular set of circumstances will determine the best way to handle the rental properties you acquired during your marriage. You can explore what options you have for your divorce by speaking with a sympathetic and supportive legal professional.