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3 Tips for Protecting Your Dayton Real Estate Assets When Going Through a Divorce

3 Tips for Protecting Your Dayton Real Estate Assets When Going Through a Divorce

Divorce is a life event that no one anticipates, and it can be an emotionally taxing experience. It becomes even more intricate when real estate assets are involved. While we all hope for an amicable resolution, it’s wise to be prepared for the worst-case scenario, especially if it leads to the sale of your property. With that in mind, here are three essential tips to help protect your Dayton real estate assets during a divorce.

  1. Take the Necessary First Steps

Emotions often run high during a divorce, but maintaining a clear and rational mindset is crucial to protecting your Dayton real estate assets. To achieve this, consider these preparatory steps:

Prepare Before Filing:

Before initiating divorce proceedings, remember that all assets, including real estate, are subject to division. To safeguard your interests, take proactive steps. Gather evidence that supports any claims you may need to make in court.

Inventory Non-Marital Assets:

Compile a comprehensive list of property acquired before the marriage, and gather supporting evidence and documentation. This includes collecting your real estate records before divorce papers are served.

Get an Accurate Valuation:

When determining the value of your real estate assets, consider factors such as tax implications and potential penalties, especially if you plan to make early withdrawals from investments like retirement accounts.

Choose Battles Wisely:

Not every asset is worth fighting for, especially when considering the cost of legal representation. Evaluate the value of the asset against attorney fees before pursuing it through legal channels.

Consider Getting a Mediator:

Divorces can be financially draining, and the final outcomes may not always align with your expectations. To reduce costs and ensure a smoother process, consider using a mediator in addition to or instead of relying solely on attorney fees. A mediator can play a crucial role in facilitating a mutually satisfactory resolution.

  1. Implement These Tactics

To protect your real estate assets effectively during a divorce, consider these strategic tactics:

Use Equity to Your Advantage:

Strategically managing negative equity can serve as a protective measure for your Dayton real estate holdings. The equity in a property is a key indicator of its actual worth, calculated by deducting the amount of loans secured against the property from its current market value. This calculation is crucial for divorce attorneys to ascertain the divisible amount among parties in a divorce. By maintaining negative equity, where the debts surpass the property’s value, you can create a safeguard around your assets, potentially minimizing the financial impact during asset division in divorce proceedings.

Prove Assets Are Premarital:

In a marriage, assets generally fall within the marital estate unless proven otherwise. Specifically, for real estate acquired prior to the marriage, it is crucial to show that any associated debts were settled before the marriage commenced. Failure to provide such proof could lead the court to classify the asset as partly marital.

Consider Setting up a Land Trust:

Real estate assets acquired before the marriage can be placed in a land trust. This strategy can protect your assets from creditors and litigators, and it can help you retain ownership during a divorce. A land trust maintains your privacy concerning property ownership, with only the trust’s name appearing in public records.

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

In some divorce cases, both parties agree to sell the property and divide the proceeds. When selling real estate assets, it’s essential to take the following steps to protect your share:

Set an Asking Price:

Pricing your property appropriately and in line with the local market is crucial. Collaborate with a local agent who possesses in-depth knowledge of the Dayton real estate market to determine the right asking price.

Prepare for Showings:

Getting your house ready for sale may require minor repairs and staging. Agree on how to cover these expenses, especially if both spouses have vacated the property. Your real estate agent can help with staging if needed.

Review Offers:

As offers from potential buyers start coming in, carefully review them. Divorce can lead to a desire to conclude the sale quickly, but it’s essential not to rush into accepting a less-than-desirable offer. Rely on your agent’s expertise when evaluating offers.

Divide the Proceeds:

After completing the sale of the property, the next crucial step is to divide the proceeds. This task is usually handled by the escrow company, which takes care of settling any remaining obligations and agreed-upon payments. However, there can be a complication if one spouse has been making mortgage payments after the separation, thereby increasing the equity in the property. In such cases, it is vital to ensure that the distribution considers this additional contribution made by one spouse.

An Important Aspect of Protecting Real Estate Assets

If you and your spouse or ex-spouse decide to sell property during a divorce, working with an experienced Dayton investor can be highly beneficial. Their local market knowledge and objective perspective can help you secure the best deal possible. If your goal is to protect your Dayton real estate assets while going through a divorce, contact us today at 937-598-2274.
In conclusion, divorces involving real estate assets can be challenging, but with the right approach and guidance, you can protect your valuable Dayton real estate assets during this difficult time.

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