Options for Disbursement of Real Estate Assets during a Divorce

Options for Disbursement of Real Estate Assets during a Divorce

by Robert Earl The Earl of Real Estate

Although it is a topic that most people don't want to contemplate or even consider, divorce has a tremendous impact on real estate and financial holdings. Real Estate may represent the largest asset that is being considered within the divorce proceeding, therefore it is something that should be considered when a separation or divorce are on the horizon. There are over 1.4 million divorces in the US every year. Here are some points, strategies and tips on how to maintain your lifestyle after a divorce and how to evaluate various real estate and financial settlement options prior to a separation & divorce:

You should research and understand the options related to disbursement of your real estate assets prior to the divorce settlement. This could include an evaluation of whether you consider:

o Sell your home or refinance your your jointly held real estate holding in order to buy-out the other party

o Pay or accept spousal support, child support or a higher cash payment versus a lump sum distribution involving the real estate holdings. You should evaluate the cash flow and home equity protection implications of various financial decisions involved with the divorce proceedings and the eventually agreement. This enables you to:

o Maintain your lifestyle

o Keep your children in the same school system as a single parent

o Live in the home that meets your needs without breaking your budget

o Stay on track to achieve financial freedom and become debt-free

You should look to improve your financial liquidity and protect your the real estate holdings from legal obligations or liabilities prior to going through a separation & divorce by working together with your CPA, CFP, attorney, Real Estate Team and other advisors.

Don't settle for an financial strategy or short-term fix if you failed to plan properly during a divorce situation. You can lessen the impact by implementing a structured plan for how to re-establish your monetary footing after going through a financial rough spot. This may involve:

o A staged approach to financing - a refinancing or debt restructuring plan that takes place over time

o Sale/Leaseback or Rent-to-Own strategy - a way to keep or purchase a home for sale or when you can't qualify for traditional financing options.

o Seek out Affordable Single Family Homes for Sale or Bank Owned / Foreclosure Homes for Sale

You worked hard to develop the assets and real estate holdings involved. You should consider all of your options to create an environment that works to protect those assets.