Savvy investors often buy one or more real estate properties. They rent the properties to tenants and receive rental income. While rental properties are a great way to earn passive income, addressing real estate property during a divorce is often complex. Many landlords are unsure of how rental properties will be dealt with during their divorce. If you or your spouse own one or more rental homes, speak to a divorce lawyer for help.
Real Estate Property Ownership Rights
There are two main types of assets in an Illinois divorce. Marital assets are those assets acquired during the marriage. Separate assets are assets that a person owned before getting married, property acquired through inheritance, and property acquired through gift. If an asset is considered marital property, both spouses have a right to a share of the asset’s value. If an asset is non-marital, it belongs solely to the spouse who originally obtained the asset.
Unfortunately, classifying property as marital or non-marital is not always as straightforward as it may seem. For example, a rental property that a spouse owned prior to getting married may become marital property if both spouses contribute to property taxes and maintenance costs.
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