Baltimore Divorce Attorneys for Real Estate

Divorce Lawyers Helping Divide Homes and Other Real Estate Property in Baltimore, MD

For many married couples, real estate may not only be one of their most valuable assets, but it may also be emotionally significant. A family home where children were raised and where memories were made may have more personal value to a person than the amount of equity in the home. During the divorce process, making decisions about real estate property can be difficult, and it can lead to disputes between spouses.

While emotional concerns may be a factor when making decisions about a family's home, legal and financial issues will also need to be considered. At Silverman Thompson, our attorneys can help our clients navigate these issues successfully, making sure they understand the financial implications of the decisions they make. We can work with clients to negotiate agreements related to their family homes, investment properties, or other assets in a real estate portfolio, ensuring that their interests will be protected.

Real Estate Assets That May Be Addressed in a Divorce

Real estate properties may come in many forms. The categories of real estate that may need to be addressed during the divorce process include:

The Marital Home

Decisions about who will live in the family home are often some of the most pressing issues related to real estate that may be addressed in a divorce. A couple's home may be their most valuable asset, and both spouses may want to continue living there. Whether a couple purchased their home together during their marriage, whether one spouse owned a home and brought it into the relationship, and whether both spouses are on the mortgage and title are all questions that may affect how the home will be addressed during divorce proceedings.

When a home was purchased during a couple's marriage using marital funds or assets, it will most likely be treated as marital property, and it will need to be considered during the division of marital assets. When one spouse owned a home before the marriage, it may be considered non-marital property. However, if the other spouse helped make mortgage payments, contributed to upkeep of the home, or made improvements to the property during the marriage, some of the home's equity may be subject to division during divorce.

Vacation Homes and Second Homes

Additional residences owned by a couple may involve unique issues to address during a divorce. These properties may carry strong personal significance for one or both spouses, and those emotional attachments may play a role in negotiations. Questions about whether a vacation home generates rental income, whether it is used seasonally, and whether one spouse wishes to keep it may determine how it may be addressed in settlement discussions.

Investment and Rental Properties

Couples who own investment real estate may need to address complex financial concerns when those holdings must be addressed in a divorce. An investment property may generate income, and ongoing expenses may need to be paid. The value of a property may have appreciated significantly since it was purchased. When dividing marital property, the current market value of real estate will need to be considered, and factors such as rental income and the condition of the property may also affect decisions about asset division.

Commercial Real Estate

When addressing issues related to commercial property, such as office buildings, retail spaces, or warehouses, issues related to valuation and asset division may become more complex. Commercial real estate may be valued based on its ability to generate income. The value may be tied to existing tenants, lease terms, and the local real estate market. If a commercial property is also connected to a business one spouse owns or operates, a business valuation and a real estate valuation may need to be performed at the same time to ensure that a couple understands the value of all assets they own.

Options for Dividing Real Estate in Divorce

Once the real estate assets have been identified and valued, spouses will need to determine how they may be divided or handled during their divorce. Options may include:

Selling the Property and Dividing the Proceeds

Selling a home or another real estate property can provide both parties with assets that can be used to establish new living arrangements or meet other financial needs. During a sale, a couple may need to address concerns related to the property's listing price, the costs involved in a transaction, and how proceeds will be allocated between the spouses after outstanding mortgage balances, closing costs, and other expenses are addressed.

One Spouse Assumes Sole Ownership

When one spouse wants to remain in the family home, they may take steps to become the sole homeowner and make arrangements to compensate the other spouse for their share of the home's equity. A buyout arrangement may be made in which the homeowner spouse will pay a certain amount to the other spouse, or the value of the home's equity may be offset with other marital assets.

When assuming sole ownership, a person will typically need to refinance the home's mortgage in their name alone. The ability to refinance may depend on a person's income and creditworthiness. Our attorneys advise clients on both the legal and practical concerns that may need to be addressed when transferring ownership of a home and refinancing a mortgage.

Deferred Sale Arrangements

In some divorces, spouses may want to avoid disrupting their family's living situation. They may agree on a deferred sale arrangement in which a spouse and the children can remain in the home for a defined period, after which the home will be sold, and the proceeds will be divided between the spouses. Deferred sale arrangements may require spouses to create a detailed written agreement that addresses who will live in the home during the deferral period, who will be responsible for mortgage payments and other expenses, and how the ultimate sale and division of proceeds will work.

Continued Co-Ownership of a Home

In some cases, spouses may choose to maintain co-ownership of real estate after their divorce. This may be an option with rental properties that generate income shared by both spouses or in situations where selling a home may not be financially feasible in the current real estate market. As with deferred sale arrangements, continued co-ownership may require spouses to create a detailed agreement that addresses decision-making authority, expense sharing, income distribution, and the conditions under which the property can be sold.

Contact Our Baltimore, Maryland Real Estate Division Lawyers

If your divorce involves real estate, the decisions you make about your home or other properties you own can have consequences that may affect your financial security and your future. At Silverman Thompson, our lawyers can help you understand your options and protect your interests as you negotiate agreements and take steps to complete the divorce process. Contact our Baltimore real estate asset division attorneys at 410-385-2225 and schedule a consultation.