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 talk about 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. Consider that there are over 1.4 million divorces in the US ever year . Here are some points, strategies and tips on how to maintain your lifestyle after a divorce and how to evaluate various real estate and financial settlement options prior to a separation & divorce:
You should understand 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 should:
o Sell your property or refinance your home or other properties in order to buy-out the other party
o Accept or pay spousal support, child support or a higher monthly cash payment versus a lump sum distribution involving real estate equity. You should evaluate the cash flow and protection implications of various financial decisions before, during and after a divorce. 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
o Stay on track to achieve financial freedom and become debt-free
You should look to enhance your real estate liquidity and protect your real estate equity from legal liability prior to going through a divorce by working together with your CPA, CFP, attorney, Real Estate Team and other advisors.
Don't settle for an undesirable financial strategy or short-term fix if you failed to plan properly during a divorce situation. You can lessen the impact by implementing a structured plan for how to re-establish your monetary footing after going through a divorce. This may involve:
o Staged 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
