If you didn’t sign a prenup when you first got married in Michigan, it’s too late to sign one when you start thinking about divorce. You’ll have to figure out other ways to protect your assets when you and your former spouse start dividing up your properties. The property division process can be especially challenging for real estate investors who rely on their properties to draw most of their income. How can you protect your assets from your spouse?
How to protect real estate during a divorce
In most cases, your former spouse will get a share of your real estate properties, even if you’re the one who bought them. However, that doesn’t mean you have to hand over half your properties during the divorce. You might be able to form an LLC that allows you to transfer your assets to the business, meaning that a court won’t consider it marital property. Your spouse will have no claim over the real estate if you keep your business and personal finances separate.
You could also form a trust and make yourself the beneficiary. You’ll still be able to use the properties as you did before, but since they’re technically owned by the trust, a court won’t consider them marital property. As a result, your former spouse won’t be able to seize your properties during the divorce.
If neither of these options is viable, you could also consider buying out your spouse’s share of the properties. You could offer them a cash amount that compensates them for the value of the properties they would have received. Just make sure you do this through an attorney so there’s no question about who owns the properties after settling the divorce.
Do you need an attorney to help you protect your real estate?
Getting divorced poses a lot of challenges for property owners. One mistake could cost you a large share of assets. Even if you manage to keep your real estate, your former spouse could try to challenge the decision later. An attorney could help you protect yourself in any situation.