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Divorce Strategies related to Real Estate Holdings
By robertearl | May 5, 2008
Although it is a topic that most people don’t want to consider, divorce has a tremendous impact on real estate and financial holdings. Real Estate may represent the largest asset that is being considered within the divorce proceeding, therefore it is something that should be considered when a separation or divorce are on the horizon. Consider that there are over 1.4 million divorces in the US ever year . Here are some points, strategies and tips on how to maintain your lifestyle after a divorce and how to evaluate various financial settlement options prior to a separation & divorce:
You should consider and evaluate the options related to disbursement of your real estate properties, including homes, condos, vacation properties, investment properties, timeshares, etc. prior to the divorce settlement. This could include an evaluation of whether you should:
o Put your home up for sale or refinance your your primary house or other real estate assets in order to cash out an ex-wife or ex-husband
o Accept or pay spousal support, child support or a higher cash flow payment versus a lump sum distribution involving any real estate assets. You should evaluate the cash flow and real estate equity protection implications of various financial decisions before, during and after a divorce. This enables you to:
o Maintain your lifestyle
o Keep your little ones in the same school system as a single parent
o Still live in a home that does not break your budget
o Stay on track to achieve financial freedom and become debt-free
You should look to correct your real estate liquidity and provide protection for your any real estate assets from legal obligations or liabilities prior to going through a separation & divorce by working together with your CPA, Financial Planner, attorney. Real Estate Team and other advisors.
Don’t settle for an financial short-term fix or strategy if you failed to plan properly during a divorce situation. You can recover by implementing a structured plan for how to re-establish your monetary footing after going through a financial rough spot. This may involve:
o A staged approach to financing - a refinancing or debt restructuring plan that takes place over time
o Sale/Leaseback or Rent-to-Own strategy - a way to keep or buy a home for sale or when you can’t qualify for traditional financing options.
o Seek out Affordable Single Family Homes for Sale
You worked hard to develop the assets and real estate holdings involved. You should consider all of your options to create an environment that works to protect those assets.
Robert Earl - The Earl of Real Estate is a Real Estate Entrepreneur based in the Northern Virginia Real Estate Market.
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