Divorce is something no one plans for, and it’s rarely an easy or pleasant process. But it does happen, and when it comes to dividing real estate assets in Miami, things can get complicated fast. While you should always hope for the best outcome, it’s important to prepare for the worst if you want to protect your assets. Here are 3 essential tips for protecting your Miami real estate assets during a divorce, especially when the situation involves a divorce property sale.
1. Take the Necessary First Steps
Emotions run high during a divorce, but you need a clear head, so take the necessary steps that will allow you to proceed logically and rationally. Here, then, are some preparatory steps you should take early on to protect your Miami real estate assets in a divorce.
Prepare Before Filing
Before you even file for divorce, remember that all assets are up for division, including real estate. It’s important to take action ahead of time by gathering important documents and preparing your case. This will make things easier when it comes time to defend your position in court.
Inventory Non-Marital Assets
Take the time to compile a thorough list of all property you acquired before the marriage and gather all the supporting evidence and documentation. “This means collecting your real estate records before your spouse hands you the divorce. In Miami, Florida you want to file a simplified divorce with no assets, visit the Miami-Dade Clerk site to file a petition.
Get an Accurate Valuation of Your Real Estate Assets
When you’re considering how to protect real estate assets during a divorce property sale in Miami, an accurate private appraisal is key. Appraisals cost $300-$600 depending on the size and property structure. Also, take into account all factors, including deferred taxes and investment gains that may affect the value of your property.
Choose Battles Wisely
Divorce can be expensive, and not everything is worth fighting for. When it comes to Miami divorce property division, consider the value of the asset against the cost of legal fees. Weighing the potential benefits of a fight can help you avoid spending more than necessary. Usually we the spouses can’t communicate it means the lawyers will be making some good money that you will have to pay for.
Consider Getting a Mediator
Divorce can be expensive, and not everything is worth fighting for. When it comes to Miami divorce property division, consider the value of the asset against the cost of legal fees. Weighing the potential benefits of a fight can help you avoid spending more than necessary.
2. Implement These Tactics
There are three major things you can do to protect your real estate assets when going through a divorce. They are . . .
Use Equity to Your Advantage
One way to protect your Miami real estate is by using equity strategically. By keeping negative equity, you maintain control over the property’s value. This strategy helps ensure you get a fair share during the Miami divorce property division
Prove Assets Are Premarital
If you owned the property before the marriage, you need to prove that it’s a non-marital asset. Provide evidence that the home was paid for before your marriage and that any loans were cleared before you tied the knot. Without this proof, the court might rule that the property is partially marital, complicating the process
Consider Setting up a Land Trust
Another tactic for protecting real estate assets in a divorce in Florida is to transfer the property into a land trust. A land trust can protect your property from creditors or litigators, ensuring that the asset remains safe. It also allows for privacy, as your name won’t appear in public records, only the trust’s name.
Here’s how it works . . .
“A land trust offers protection by maintaining your privacy with regards to ownership of real estate. The land trust will be the legal owner of the estate, and your name will not appear in any public records that identify property ownership. Only the trust name will exist.”
3. The Process of Selling Real Estate Assets in a Divorce
In many cases, divorcing couples agree to sell the property and split the proceeds. If you’re facing a divorce property sale in Miami, here’s what you need to know:
Set an Asking Price
We already discussed the appraisal during a divorce. Another was to coming to an agreement of what the right price for divorce property sale is working with a realtor to get the on market value but also get cash offers from investors off-market. If you’re unsure about how to price your home, consulting a Miami agent is a smart move. Call (786) 400-2628 for expert advice, we are local and know all neighborhoods from Miami-Dade to Broward County.
Prepare for Showings
Preparing your home for sale can be challenging, especially if one of the spouses is living in the property. This person who is living in the property is usually upset about having to sell the home they are comfortable in and having to go through the house buying process again. Make sure to agree on who will pay for any necessary repairs or staging, as this can be another point of conflict. If there is a party that has moved out, it is important to provide access for showings and to keep the property clean to maximize its appeal to buyers.
Review Offers
When offers start coming in from potential buyers, it’s important to review them carefully and work together to assess the best option. In a divorce situation, there’s often pressure to move quickly, which can lead to accepting an offer just to get the process over with. Cash offers from investors, can often provide a quicker and more certain sale, without the hassle of traditional buyers with bank loan or lengthy negotiations. Be sure to evaluate all offers thoroughly, and don’t rush into a decision. With the right guidance and knowledge, you can secure a fair deal that benefits both parties.
Divorce Property Sale, Divide the Proceeds
The last step in the process will be dividing the proceeds of the sale. “In general, that shouldn’t be too complex – the escrow company can distribute the money, after paying off all the obligations on the house and making whatever other payments you’ve agreed to.”
Usually, the only difficulty that arises here is when “one spouse has been making post-separation mortgage payments, that spouse has probably been reducing the principle amount and increasing the equity, which may increase the amount to be divided between the spouses after the closing costs and obligations have been paid. The distribution should be adjusted to account for the paying spouse’s contribution.”
An Important Aspect of Protecting Real Estate Assets
If you and your spouse/ex-spouse decide to sell property, you’ll likely come out far ahead by working with an experienced Miami real estate investor. They will have knowledge of the local market and will be able to keep a cool head in order to get you the best deal possible. If your goal is to protect your Miami real estate assets when going through a divorce, be sure to contact us today at (786) 400-2628.