What is Real Estate?
For most, “real estate” refers exclusively to the marital home. However, there are some who have acquired additional real estate such as a vacation home, or hunting property. For our purposes, real estate does not include rental properties since that’s considered a Business Interest.
🤔 Understanding how Real Estate affects your divorce.
Real Estate acquired during the marriage is usually treated as marital property. Assets acquired by one spouse but which the other spouse uses regularly during the marriage may also constitute marital property. You and your spouse will need to make the identity of each asset clear. You will also need to determine the present value of your assets to help you determine how to divide the overall value of your marital estate between you. If the asset is encumbered by a loan, you will need to identify the loan account number, the name and location of the lender, the loan balance, and the amount of the monthly loan payment.
As you consider how to divide the assets acquired during the marriage, it’s best to take into account the purpose and primary user of each asset.
Jerry and Sally purchased a home a few years ago. They’ve jointly decided that Sally should remain in the marital home after the divorce and, to ensure fairness, she’s agreed to refinance the home to remove Jerry from the mortgage within 6 months of the final divorce decree.