What Will Happen To My Investment Properties During My Florida Divorce?
This is a complicated question with several nuances. Generally speaking, a determination must be made as to whether or not the investment property is the property of one individual spouse or the marital estate. If the investment property belongs to you individually, then you don’t have to worry about it being split with your former spouse after your divorce is finalized. However, if the investment property is the property of marital estate, then it will have to be divided according to Florida’s equitable distribution rules. In this article, the Tampa divorce lawyers at Faulkner Law Group, PLLC, will discuss Florida’s equitable distribution laws and how they apply to investment properties in Tampa.
How do the Florida courts handle investment properties during divorce?
Assuming the investment property is property of the marital estate, the asset is subject to equitable distribution. The thing you need to realize about equitable distribution is that the courts won’t necessarily split assets in half. They could favor one spouse with more of the marital estate than the other. This generally happens when one spouse has a considerably lower earning power than the other and would be disadvantaged by an even split.
In addition, there are numerous factors that determine how property will be divided in a Tampa divorce. As far as investment properties go, the court is likely to consider the following elements:
- When was the investment property acquired? Property that was purchased before the marriage is generally considered separate from the marital estate, unless marital funds were used to improve it. If the property was acquired during the marriage, it is property of the marital estate and subject to equitable distribution.
- In whose name is the title? When both spouses are listed on the deed, it will likely be treated as marital property. This remains true even if one spouse paid more toward the property than the other.
- Who made contributions to the property? The judge will look at which spouse paid the mortgage, for maintenance, or other improvements on the property.
- Is there income from the property? If the property is generating rental income during the marriage, the rental income itself can be classified as a marital asset.
Dividing an investment property during a Florida divorce
When you divide an investment property during your divorce, it’s important to consider the financial consequences after it’s divided. You will need to consider the following:
- Tax implications – If you sell an investment property as part of your divorce settlement, you may need to deal with capital gains taxes.
- Income – If the property is generating rental income, you will need to determine if that income goes to one spouse or is split between them.
- Buyouts and refinancing – Often, one spouse buys out the other to take individual control over the investment property. In that case, they may need to refinance the mortgage or remove the other spouse’s name from the title.
Talk to a Tampa, FL, Divorce Lawyer Today
Faulkner Law Group, PLLC, represents the needs of spouses who are going through a divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin addressing your concerns right away.
