How to Divide Real Estate Investments During a Divorce in Illinois?
A divorce or otherwise called a “dissolution of marriage” proceeding is an emotional time, which is more difficult when a family has a Real Estate Investments in their family holdings. Most divorce attorneys fail to understand business and real estate investment issues because they were trained to be a divorce lawyer.
Skilled and Experienced Real Estate and Divorce Attorneys
Unlike most law firms, Gateville Law Firm is skilled at real estate and dissolution of marriage law. We have real estate and dissolution of marriage lawyers that understand how to protect Real Estate Investments. The first step in the divorce process is filing of the Petition for Dissolution of Marriage. The Petition for Dissolution of Marriage summarizes the critical issues required to be included to begin the divorce process.
One of the critical steps in a divorce is the filling out the financial affidavit. The purpose of the financial affidavit is to inform your spouse of your assets, liabilities, and debts. The financial affidavit is used to evaluate how marital assets must be distributed. Marital assets are assets, which are acquired during a marriage. Non-marital assets are assets, which are either acquired during a marriage by inheritance, assets described in a pre-nuptial agreement and or assets, which were acquired prior to the marriage.
Generally, valuing real estate investments is straightforward. An appraisal is sought, which measures the fair market value of the properties. The challenge for most divorce attorneys is understanding cash flow, reviewing a profit and loss statement and or understanding the skills and commitments required to build a substantial real estate portfolio.
In most divorces, one spouse has the skills required to be a good landlord. In some marriages, both spouses will equally contribute to the maintenance and upkeep of the real estate investments. However, in many cases, one spouse may find it difficult if not impossible to make a successful real estate investor. Navigating as a real estate investor or landlord is a difficult tasks, which requires precision and expertise. In many cases, precision and expertise is learned through mistakes and bad situations.
Division of Marital Assets and Real Estate Investments
In Illinois, marital assets and liabilities are allocated based upon equitable distribution. Simply put, equitable distributions means that all factors are considered in the division of marital property such as the following:
- The value of the property
- Length of the marriage
- Health of the parties
- Whether there is a pre-nuptial or post-nuptial agreement
- Income generating ability of the parties
- Financial contributions prior to the marriage such as a non-marital asset deposit towards the property acquisition
- Ability of each spouse to make a living in the future
Real Estate and Complex Assets and Instruments
Addressing the issues of real estate is a difficult task for most divorce attorneys. Most divorce attorneys were not trained in business or real estate law. Living Trust or otherwise known as “Declaration of Trust”, Limited Liability Companies and or Land Trust are not commonly known terms by most attorneys or divorce lawyers.
A key question, which most divorce attorneys fail to understand is whether it is wise for one spouse to attempt to be a landlord. Being a landlord is a difficult task and often, one spouse fails to understand the complexities and skill required to successfully collect rent and be a profitable landlord.
The lawyers of Gateville Law Firm concentrate in complex business and real estate investment divorces because their founder has a significant tax, business, divorce, and estate planning background. Real estate acquisition and divorce requires a certain type of divorce, business, and real estate background couples with an aggressive litigation strategy.