16 Jan What Happens to Rental Property During a Divorce?
Divorce can be emotionally and financially stressful, as it often entails losing the normalcy of sharing love, family moments, and assets like property with your spouse. Determining what happens to rental property during a divorce can be complex, as questions about ownership, management, and financial responsibility usually arise. However, understanding your rights, your options, and the laws in place can help you and your spouse manage and divide rental property fairly.
State Laws Decide the Definition and Division of Property
First, you and your spouse should determine if you live in a community property state. If yours is a community property state, the law will divide marital property—property acquired during the marriage—equally between spouses unless your circumstances require a different agreement.
On the other hand, a separate property state typically views property as belonging to one individual, even if they have a spouse. The definition can vary per state, but common foundational concepts include the following:
- Property owned before the marriage
- Property received as a personal inheritance or gift
- Property acquired with separate assets
Separate property states typically determine that property remains with the spouse who owns it, provided there was not any co-mingling with marital funds or resources.
Legal Considerations To Make in Washington State
Washington State is an example of a community state. Under its community property laws, courts will generally divide property equally. However, the court may deviate from a perfect 50/50 split if one spouse makes a more substantial financial contribution toward acquiring the property or managing its upkeep. Consulting a property division attorney who knows the state’s laws can help you receive the best settlement that suits your finances and honors your legal rights. Lawyers at LaCoste Family Law will help you present property expenses and uncover assets your spouse may have no intention of disclosing to guarantee the court grants you a “just and equitable” outcome.
You and Your Spouse Weigh Your Options
There are several rental property division methods in a Washington State divorce. The most common are:
- Selling the property
- Dividing multiple properties
- One spouse buys out the other
- Co-ownership
Any of these options require you and your spouse to reach an agreement on selling or dividing the property and how to split and manage the proceeds. A family law and divorce attorney can help you navigate the settlement process.
Pro Tip
Make sure to account for and agree to property-related expenses, such as mortgage payments, repairs, and taxes, to prevent surprises during the division process.
Navigating Rental Property Division Fairly
Whether you both agree to sell your property, one of you buys out the other, or you let the court handle the division, consult a real estate professional to appraise your property thoroughly. They can alsohelp you document property income and expenses.
Likewise, working with an attorney who’s familiar with Washington’s community property laws can give you a detailed understanding of what happens to rental property during a divorce. They can negotiate fair outcomes for you tailored to your unique circumstances.