Minnesota real estate investors often make strategic moves in order to keep their investments generating lucrative income. However, they may not always take the steps necessary to ensure the protection of those investments from certain life events. In particular, if you are facing a divorce, you may worry that your real estate investments could be at risk.
Depending on the specifics of your case, your investments could be up for division. Under state law, the court divides marital assets in the most equitable manner possible rather than a 50/50 split. If you had a prenuptial agreement in place, you may have avoided distribution strictly by the terms of the law. Fortunately, you still have options for protecting your assets even if you did not.
What other assets are available?
If keeping your real estate investments is a priority for you, you may want to inventory your other property. It may be possible for you to negotiate with your spouse in order to buy out his or her interest in the investments. A fair trade could come in the form of other investments, cash, collectibles or even other items that your spouse has a particular desire to obtain. Of course, your spouse may not immediately feel open to this option, so remaining flexible may be necessary.
Is your investment venture part of an LLC?
If you formed an LLC to manage your real estate investments before you got married, it is more likely that your real estate will fall into the category of separate assets. However, if you commingled any of the investment income or other related assets with your marital property, it is more likely considered marital property.
While it is best to take many protective measures before marriage, it is not impossible to reach an outcome that allows you to keep your real estate investments or at least the majority of them. It may just take more strategizing and negotiating. Fortunately, your savvy business skills may come in handy during these negotiations.
Brush up on your legal rights
Additionally, you may want to ensure that you understand your legal rights and options during your divorce. If you approach your situation in a businesslike manner, you may have a better chance of remaining focused and ensuring that you don’t overlook any important details. High-asset divorces can become more complex, but you have various options at your disposal for completing the process smoothly.