Outside of Children, Real Estate is the largest issue for those facing divorce
Although it is a topic that most people don't want to contemplate or even consider, divorce has a tremendous impact on real estate and financial holdings. Real Estate may represent the largest asset that is being considered within the divorce proceeding, therefore it is something that should be considered when a separation or divorce are on the horizon. With over 1.4 million divorces in the US alone, every year. Here are some points to consider on how to maintain your lifestyle after a divorce and how to evaluate various real estate and financial settlement options prior to a divorce:
You should research and evaluate the options related to disbursement of your real estate holdings prior to the divorce settlement. This could include an evaluation of whether you consider:
o Put your home up for sale or refinance your home or other properties in order to buy-out an ex-wife or ex-husband
o Pay or accept spousal support, child support or a higher cash flow payment versus a lump sum distribution involving the real estate holdings. You should evaluate the cash flow and home equity protection implications of various financial decisions involved with the divorce proceedings and the eventually agreement. This enables you to:
o Maintain your lifestyle
o Keep your children in the same school system as a single parent
o Live in the home that meets your needs without breaking your budget
You should look to improve your real estate liquidity and provide protection for your the real estate holdings from potential liabilities prior to going through a separation & divorce by working together with your CPA, Financial Planner, attorney. Real Estate Team and other advisors.
Don't settle for an less than desirable financial short-term fix or strategy if you failed to plan properly during a divorce situation. You can minimize the impact by implementing a step-by-step plan for how to re-establish your financial ways after going through a divorce. This may involve:
o A staged approach to financing - a refinancing or debt restructuring plan that takes place over time
o Sale/Leaseback or Rent-to-Own strategy - a way to keep or purchase a home for sale or when you can't qualify for traditional financing options.
o Seek out Affordable Single Family Homes for Sale or Bank Owned / Foreclosure Homes for Sale
You worked hard to develop the assets and real estate holdings involved. You should consider all of your options to create an environment that works to protect those assets.
Robert Earl - The Earl of Real Estate is a Real Estate Entrepreneur & Real Estate Coach based in the Northern Virginia Real Estate Market.
Published May 16th, 2007
Filed in Business, Real Estate
