When a couple divorces, the home that they once shared typically gets sold while the profits get equally distributed between the two. However, this process is not always viable for real estate investors. If you are a real estate investor in Michigan, you should educate yourself on your options when protecting your investments.
Attempt to buy out your spouse
This is typically the easiest option, even though it does involve cutting a potentially large check to your ex. If this is the route you want to take, you will need to have a professional provide a written estimate of the value of your property portfolio. Once that amount has been decided, you and your ex can negotiate a buyout amount that works for both parties.
Form an LLC
An LLC is a business structure that allows you to own your business without your personal assets being at risk should things not work out. This is a better option for investors who have an LLC in place before they get married. In those cases, the court will view the investment properties in question as non-marital assets and property of the LLC.
Domestic asset trust
Much like an LLC, forming a domestic asset trust works best if done before you get married. Technically speaking, you don’t own the properties that are in this trust. However, you can name yourself as a beneficiary, which gives you control over the assets in your investment portfolio.
Asset division is often one of the most contentious aspects of a divorce. If you are facing a divorce, you should work with an attorney who is familiar with divorce and property division. This attorney may review the assets you own while helping you find a way to protect them from your former spouse.