Home Loans and Investment Properties after Divorce
One of the main financial concerns when a marriage breaks down is often around how home loans, the marital home or investment properties will be divided or distributed between the parties.
When it comes to the marital home, one of the main considerations that must be taken into account, both on an interim and final basis, is the financial capacity of each party to maintain the property during negotiations and in a final basis.
It does not necessarily follow that whoever remains in the home in the immediate or interim period will be required to bear the sole costs of maintaining the home nor does it follow that they will be required to or obligated to retain the home on a final basis.
Where a prenuptial agreement is in place this may speed up the process as both parties will be aware of a previously negotiated financial outcome if they divorce.
In the absence of a prenup, the first port of call would be for both parties to try and negotiate a financial settlement through their respective solicitors and/or via mediation, but this may not always be possible, and in some circumstances court proceedings are required. In all scenarios, using reputable divorce lawyer to support your case is highly advisable.
If a property is being sold, it is also important to consider and include in any terms of agreement or orders, the fees that are incurred through the sale of the marital home or investment properties, as well as the taxation implications of same. In the same way assets and liabilities are considered throughout divorce, any existing home loans, mortgages and current or future fees should be brought into the property pool to be reconciled.
For those with both a marital home and investment properties or assets, the additional support of a tax and finance consultant is suggested.
Depending on a multitude of elements, the dissolution of a formerly joint income from the investment property, the potential divestment of property and the ensuing capital gains tax and other fees need negotiation and planning.
Again, there are a multitude of financial aspects to consider that a combined approach from a divorce lawyer and financial consultant will be able to clarify.
Dealing with property in divorce can be complex and often more difficult where a separation is less than amicable. Seeking professional legal advice (and financial consultancy) where any significant assets are involved is highly recommended. To speak with one of our experienced team members please contact us at 07 3837 5500 or at firstname.lastname@example.org