How To Protect Your Estate During A Divorce

Maximize on the Equity of Your Property

If you’re going through a divorce, you’ll want to protect any real estate assets you have control over. One way to do this is by maximizing your equity in the property. Equity is the difference between the property’s market value and any loans secured by the property. So, if you have a lot of equity in your property, it’s more likely that you’ll be able to keep it in the divorce. Maintaining negative equity is the best way to protect your assets.

Keep Good Records of All Your Assets

The assets you’ll need will include both financial records like bank statements and investment portfolios, as well as physical items like jewelry, art, and furniture. Having a clear picture of your assets will help you negotiate a fair settlement in the event of a divorce.

In addition to keeping good records of your assets, you should get your assets evaluated so you know the accurate value of everything you own. This will also help ensure you keep what is rightfully yours and that the estate is divided equally.

Consider Getting a Land Trust

If you’re looking for a way to protect your real estate assets during a divorce, you may want to consider setting up a land trust. Commonly used by real estate investors and large estate owners, land trusts are legal entities that take ownership and authority over a piece of property at the request of the property owner. 

With real estate assets set up under a land trust, the property is controlled by a trustee and is not considered community property in the case of a divorce or separation. This can be a great way to protect your assets, as property under a land trust is legally owned and exists under the name of the trust, which allows for anonymity with property ownership.

Consult with a Real Estate Agent

We know this may seem like an odd tip if you are already working with an attorney, but a real estate agent or property broker can help you understand the process of dividing property in a divorce for your specific state and can give you advice on how to protect your interests. Coldwell Banker Premier has property brokers in Virginia, Washington, Delaware, Maryland, North Carolina, Pennsylvania, and Washington D.C. so you can find a real estate agent near you!