Although getting a divorce is not uncommon today, it is especially stressful and complex for those who are dealing with a high-net-worth and a real estate portfolio. If you are living in New York, knowing how you protect your real estate portfolio throughout your divorce proceedings is imperative to prevent the loss of your investments, assets, and real estate itself.
Establish a domestic trust
One option to help with the process of a high-net-worth divorce is to establish a domestic trust. A domestic trust can protect assets and keep them safe, even while you are going through a divorce for any reason. With a domestic asset trust, it is possible to name yourself as the beneficiary.
Form an LLC
Forming an LLC is one of the best methods of separating assets and other real estate properties legally. Transferring your assets to an LLC you have formed (as the sole operator/manager) is one way to assume control even before you get married or sign a prenuptial agreement. If you choose to form an LLC while you are already married or even while you are attempting to file for a divorce, the court may still rule your real estate portfolio as community property, depending on surrounding circumstances.
Attempt to work with your former spouse
With any high-net-worth divorce, it is highly advisable to attempt to work together with your former spouse in an amicable and civil manner, if possible. One solution that can help prevent future disputes and financial arguments is to buy your former spouse out of your current real estate properties and/or portfolio. Discuss your legal options and the best routes for you with your financial advisors.
Whenever you have a real estate portfolio and are considering filing for divorce, it is important to have a plan of action in place. With the right legal team, learn how you can better protect your real estate portfolio regardless of the circumstances of your separation.