It may be easier to decipher who is the owner of your family home in the event of a divorce. But it may be a gray area if you and your spouse have a second property that you rent out. That is, you may be unsure who has the rights to its ownership, its future profits, etc. Read on to discover how rental property is divided in a divorce and how a seasoned New York City division of assets attorney at Zimmet Law Group, P.C. can work to protect your home.
What is the New York family law on dividing rental property?
You must understand that New York is an equitable distribution state. This means that, when it comes to dividing property in a divorce, the New York family court will do so in a way that is fair and just. Importantly, fair and just does not equate to a 50/50 split. Rather, the size of your and your spouse’s share will be placed at honorable percentages.
What’s more, the court will only conduct this division on property that is considered marital property; this refers to property that was acquired by you and your spouse together once you were already married. So, if you and your spouse acquired your second property during your marriage, it may be subject to equitable distribution.
What are the options for dividing rental property in a divorce?
Understandably so, you may not want the court to make the final decision on who gets to keep the rental property. For example, you may not financially contribute to a majority of the rental property, but it may hold a deeper sentimental value for you. This is a meaning that the court and New York State law do not consider.
In a situation like this, you and your spouse may want to avoid litigation and instead use an alternative divorce method (i.e., mediation, collaboration, arbitration, etc.) to settle what to do with the rental property. With this, you and your spouse may opt for any one of the following options:
- You and your spouse may continue to operate the rental property together: this is best if your property generates consistent revenue, along with your and your spouse’s ability to remain amicable.
- You and your spouse may sell the rental property: this is best if neither you nor your spouse want to maintain the rental property and prefer splitting its proceeds.
- You may trade your share of the rental property for a marital asset equivalent in value, or vice versa: this is best if you hold a greater sentimental value to your rental property than your primary property, or vice versa.
You must take the initiative and reach out to one of the competent New York City matrimonial and family law attorneys at your earliest possible convenience. Our team at Zimmet Law Group, P.C. will be happy to serve you.