Dividing Investment Properties in a Florida Divorce

Dividing marital property during a Fort Lauderdale divorce can be contentious, particularly when investment properties are involved. Unlike a family home, investment properties often generate income and appreciate over time. This can make valuation and division more complex.

If you are considering filing for a divorce in Broward County and have investment properties, it is important to understand how Florida law impacts these types of assets. Our Fort Lauderdale divorce lawyer explains what you need to know and steps you can take to protect your financial future.

How The Broward County Court Handles Investment Property Division In Divorce

Under the Florida Statutes, marital assets are subject to equitable distribution when getting a divorce in Fort Lauderdale. This means that any investment properties (or other marital property and assets) acquired or improved during the marriage will generally be split fairly between the spouses, rather than simply dividing everything in half.

There are a variety of factors that influence marital property division in Broward County divorce cases. When it comes to investment properties, the judge in your case is likely to consider:

• Date of acquisition: Property bought before marriage may be considered separate, unless marital funds were used to maintain or improve it.
• Title ownership: If both spouses are listed on the deed, it may be treated as jointly owned, even if one spouse paid more toward the property.
• Contribution to the property: Courts look at who paid for maintenance, mortgage, and improvements.
• Income from the property: Rental income generated during the marriage can be classified as a marital asset.

Financial Considerations When Dividing Investment Properties In A Fort Lauderdale Divorce

When dividing investment properties in a Fort Lauderdale divorce, it is important to consider both the current and future financial consequences during negotiations and before agreeing to any settlements. Here are some things to keep in mind:

• Tax implications: If a property is sold as part of the divorce, capital gains taxes may apply. The Internal Revenue Service (IRS) may allow exemptions if the property was a primary residence for a qualifying period.
• Depreciation recapture: You may need to account for prior tax deductions when transferring ownership or selling a property.
• Ongoing income: If the property produces rental income, you’ll need to determine whether one party will retain it or if income will be split post-divorce.
• Refinancing or buyouts: If one spouse wants to keep the investment property, they may need to refinance the mortgage or loan to remove the other spouse’s name.

Consult Our Experienced Fort Lauderdale Divorce Lawyer To Protect Your Rights

Determining how to divide investment properties in a Fort Lauderdale divorce can complicate legal proceedings and increase the chances of serious disputes between the parties. Getting professional legal help helps ensure that you walk away with your fair share.

Vanessa L. Prieto Law Offices, LLC, is here to help and can guide you through the process, from identifying marital versus non-marital property to negotiating a favorable settlement or court decision. Contact our office today and request a consultation with our experienced Fort Lauderdale divorce lawyer.

Sources:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html

irs.gov/forms-pubs/about-publication-504