Part Two: Real Estate & Divorce | Mediation & Asset Allocation
(1 min 21 sec read)
This is Where Things Get Complicated
If the property in question becomes in any way a form of income, enjoyment (a vacation home for example), or the marital home, it does not matter who owned it prior to marriage, the property becomes a shared asset. When this happens, it joins other marital assets, like joint bank accounts, cars…etc…things that were purchased after the wedding date. These assets are then divided as equally as possible between the parting spouses.
What Happens if Both Parties Want the Property?
Regardless of why a spouse wants the property in question, be it for financial or sentimental reasons, or even in some cases out of spite, things can get tricky. If one party is willing to give up ownership then they will essentially be bought out by the partner who is keeping ownership. However, if neither is willing to walk away from the property, generally the decision is made by the courts.
Often the person who the court does not rule in favor of will receive a number of other assets in place of the property. Not only that but often the spouse that ends up winning in court ends up losing other valuable assets that they had anticipated keeping possession of.
Prior to going to court, one option that spouses have is to attend a third-party or private mediation. This gives the invested parties another opportunity to divide their assets, (with some assistance) without having to go through an entire divorce proceeding. There are