As it is throughout the rest of the United States, divorces are common in Oregon. If you’re getting ready to get divorced, there can be lots of important things on the line. With that in mind, real estate investors often worry about how going through a divorce will impact the future ownership of their properties. Follow these strategies to help protect the future of your real estate portfolio.
Start a limited-liability company
One way to protect a real estate portfolio is by moving your properties into a limited liability company. In the best-case scenario, a court rules that these assets are non-marital properties.
Buy out your former spouse
If you’re looking for the easiest way to protect your properties, buying out your former spouse might be the perfect solution. The process for doing this is simple. First, you need to determine the total value of your properties. After this step, you or a financial professional can determine the worth of your spouse’s portion of a portfolio. Many people have divorce professionals create legally-binding agreements for these buyouts. If not, this transaction could get called into question in the future.
Set up a domestic asset trust
You might also consider setting up a trust for your assets. By doing this, your properties become owned by a trust. By naming yourself as a beneficiary, you can retain ownership of your properties. As it is with an LLC, you’ll have the best chance of retaining your properties if you opened this trust before getting married.
If you own a real estate portfolio, it’s imperative to protect it in a divorce. By utilizing the previously mentioned strategies, you can help ensure that your former spouse doesn’t end up owning all of your properties.