Whether one accumulates assets before or during a marriage, protecting those assets during a divorce often becomes a high priority. While assets such as money may be relatively easy to divide during a divorce, other assets, like real estate, are much more complex and may require some forward thinking. Someone who invests in real estate and owns multiple properties should be especially proactive about protecting them well before the potential for high-asset divorce arises.
A Pennsylvania real estate investor may have more control over his or her assets by forming a limited liability company and transferring those assets to the LLC. Since they are no longer the investor’s personal assets but belong to the LLC, they may be off the table during asset division – particularly if this structure was established before the marriage took place. However, taking this step when a divorce is already on the horizon may be interpreted as hiding assets, so it is wise to obtain legal guidance.
When divorce is inevitable
Unfortunately, too many real estate investors face divorce without a plan to protect their assets. To avoid losing valuable property during asset division, an investor may attempt to negotiate an appropriate buyout with his or her spouse. This may involve obtaining a professional valuation of one’s real estate portfolio and offering the spouse an amount commensurate with his or her share of the assets.
Without an LLC or prenuptial agreement, a real estate investor may have few choices when divorce is looming. No matter the path a real estate investor takes to protect his or her portfolio, it is wise to do so with experienced legal counsel. In fact, a Pennsylvania attorney with experience in high-asset divorce may suggest other alternatives to avoid dividing one’s real estate portfolio in a divorce.