If you’re getting a divorce in Maryland, there can be a lot of things at stake. Some people earn an income by owning multiple properties and worry about having to split those properties in a divorce. Fortunately, there are ways you can protect yourself as a real estate investor going through a divorce.
Transfer your assets to an LLC
One way to handle a situation involving complex property division is by creating an LLC. This arrangement will work out the best if you keep your personal and business assets separate throughout your marriage. If not, the court could determine that what’s inside of your LLC is community property.
Set up a domestic trust
While it’s a little more complicated than setting up an LLC, you can also establish a domestic trust to protect your properties. The key to success with a domestic trust is setting it up and making yourself a beneficiary. Like with an LLC, it’s best to establish this trust before getting married. Setting up this type of trust while you’re married could mean that its contents get split with your ex-spouse.
Buy out your spouse
You might find that the best way to protect your assets is by making an offer to buy out your ex-spouse. To do this, a professional would need to estimate the total worth of your properties. Then, you would determine your former spouse’s share and make them an offer.
Protecting your property portfolio during a divorce can be tricky. You could find yourself in hot water if the court determines that you’re intentionally selling or moving properties into other accounts to avoid splitting them with your former spouse, so it’s important to evaluate your legal options.