Property Distribution in Divorce

What do you do with it when you say goodbye? The equitable distribution of real estate assets in a divorce is frequently a hotly contested issue that needs to be addressed well in time. The present state of one’s marriage is not a factor. The impossibility of predicting the future is. More and more lawyers are making a fortune out of divorce-related property contention. In fact, divorce-related litigation has almost become a real estate market in its own right.

Most couples do not even dream of the possibility of going their separate ways when they buy a piece of property together. In fact, divorce is normally not something that comes with plenty of advance warning. The practical question of “who gets what?” is not the only one that will be asked. For example, things can get complicated if the property has been bought with a jointly taken home loan that has not been fully paid up.

Having to look at such aspects of one’s marriage when it is on the verge of termination is extremely unpleasant. In America, where divorce is a more evident and accepted fact of life, such matters are often dealt with in what is called a ‘pre-nuptial agreement’. Such an agreement makes provisions for all the above-mentioned possibilities even before the couple ties the knot. Still, many divorcing couples to agree quickly and unresistingly to any kind of arrangement made for the jointly owned real estate. The main criterion here is to get an unpleasant process done with as soon as possible – never mind the cost.

The simplest solution, of course, would be to sell the property on the real estate market and split the proceeds. But for various reasons, this does not always work. A more matter-of-fact approach to this tricky problem would be for the couple to agree to lease or rent out the property, split the regular proceeds and allow the property to appreciate in value.

Under certain circumstances, immediate sale and division of the proceeds may be the only solution. If this is the case, the haste factor should be eliminated. The wisest course of action would be to call on an experienced real estate surveyor to appraise the property. If the furnishings and other movable assets are also part of the debacle, an auction of these will yield fairer results than a mere rough estimate.

Happily, having to tackle the issue of property can sometimes reverse the decision to divorce in the first place. When a couple considers the emotional investment mutually made in such a property, plenty of second thoughts are likely to spring up. There are cases where couples then sit back, reconsider the whole thing and finally decide to give the marriage another go. There is no point in trying to anticipate such a positive development, this being a matter of human chemistry that defies prediction.