When you divorce, it’s common to split your assets, but did you know you can continue to co-own any of your assets post-divorce? When it comes to most belongings and assets, it’s easier to split than share them. This is not always the case with high-value assets, particularly ones that can continue to produce revenue or accumulate in value.
Certain assets are more profitable to you and your soon-to-be ex-spouse when you don’t have to give up or sell your share to the other. This can be incredibly helpful to divorcing spouses with children they both still need to care for.
The divorce attorneys at Untying the Knot can list and detail what properties can have co-owning spouses and why this might be a good idea.
Assets Divorced Spouses Can Co-Own Together
The problem is that many divorcing spouses believe they need to split everything. This is not always the best idea. It can leave one or both spouses in a bad financial spot because they didn’t know it was possible to co-own property after their divorce that they bought as a couple. We want to go over what assets may be better to co-own than to sell and/or split.
1. Houses & Other Real Estate Properties
It may seem crazy to keep a house with your ex-spouse, but in today’s housing market, buying a home is hard to do. We’re not suggesting that living with an ex is a good idea, but having a real estate property that’s likely to continue to grow in value is.
While the urge to sell the property and move is understandable, waiting to sell it can result in you and your spouse gaining more money in the long run. If you have children, you may want to keep your house for them. This way, you can pass it down to them, or you can sell it at maximum value to fund their future.
The same can be said for any real estate property you own that’s not your main home. If you have other real estate properties, such as apartments you rent out, vacation homes, or time-shares, you may want to co-own them with your spouse. These co-owned assets will accumulate value like a house would. This is something to consider when deciding how to split your assets.
2. Businesses
If you and your spouse own a business, we don’t immediately suggest that you sell the business in your divorce. Unless that business is failing and falling apart, so much so that you believe there’s no way to turn it around, giving it up may be a bad idea.
A moderately successful business is a consistent source of income and revenue for you. Even if you’re not an active part of the business’s daily process, having something that can supplement your income can only help.
Also, like with real estate properties, you can pass your share of the business to your children. The one difference is that if your spouse remarries and/or has more children, there’s no guarantee that they will leave any portion of the business to the children you have together. By having your own share, you can make sure that your children are left a percentage of the business.
If your spouse wants to sell the business to you, this may not be in your best interest either. During a divorce, you should be trying to make sure you have money to support yourself and your family after the divorce. Buying your spouse out of a business can make that difficult, though sometimes co-owning an asset isn’t always possible.
3. Stock Options
Stock options may not be tangible assets, but if they are purchased during your marriage, they are marital property. Whether or not it’s a good idea to sell to your partner, or to sell them together and split the profits is a question for a stock broker, not an attorney.
We can suggest that you research and do your due diligence on whether or not the stock options you and your spouse are something you should be selling. If they’re not, it may be worth co-owning the asset and selling it later.
When you can potentially make more money by hanging onto these assets, it’s an option you should consider.
4. Savings Accounts For Your Children
If you created a savings account or another type of bank account for your children, it may be better for your children to keep it. Your soon-to-be ex-spouse will always be the other parent of your children. Any monetary account made to benefit your children is something you may not want to split.
Many banking accounts, such as savings, accumulate interest over time. This means that having one large account that you both contribute to can leave your children with more money when they come of age. If you’re worried about your spouse taking the money, you and your spouse can create an account that you can only add to, that can’t be withdrawn from for anything but emergencies, joint withdrawals, or by your children.
Learn About All of Your Options With Untying the Knot
Sometimes, it’s not best for your future to stop sharing everything with your soon-to-be ex-spouse. Certain assets will benefit you more in the future if you co-own them with an ex-spouse for even a little while longer.
If you’re unsure as to what these assets are, our online divorce attorneys and platform can help. We’ll walk you through different steps and recommend financial professionals who can help advise on what’s best for you and your family’s future. Contact us today or check out our online services for help.