Agreeing on how to split assets can be an incredibly tough part of the divorce process, especially when you can’t agree on who should have what. Property is often one of the most valuable things that couples buy together, which is also what makes it such a hot topic when the relationship breaks down.
If you both saved up and bought a rental property together during your marriage, you’ll want to make sure you protect the rights you have over your share.
Parties can agree without going to court
The first thing to mention is that divorcing parties can decide on what should happen with their assets by themselves. If you can agree there is no need for the matter to go to court. You will, however, still need a judge to approve any agreement you both come to and they will only approve it if they agree assets, including property, have been split equitably.
California is a community property state
If you and your ex-spouse bought rental property during your marriage, it is considered marital, or community, property. If you can’t agree to a split and your case goes before a judge, everything will be split equally between both parties.
You have options available to you as to what you do with a rental, such as:
- Choosing to keep the property, managing it together and splitting any proceeds between you 50/50
- Selling up and sharing the sale proceeds
- If you have more than one property and you can find a way to split them equally (e.g. you each take one of the two rentals you own)
The best resolution for the rental properties you acquired during your marriage will depend on your own unique circumstances. Speaking to a compassionate and helpful legal professional lets you understand what options are available to you.