If you are going through a divorce in Georgia, it is important to take steps to protect your real estate portfolio. This may seem like a daunting task, but with the right information and planning, you can do it.
Establish a domestic asset protection trust
This type of trust may help protect your assets from creditors, including your spouse in the event of a divorce. This kind of trust holds your assets in a separate legal entity, which can help to shield them from seizure from your spouse or creditors. In the event of a divorce, your spouse may not be able to access the trust or its assets, depending on when the trust was created.
Establish a limited liability company (LLC)
This type of business entity provides limited liability protection for its owners, meaning that your assets will likely get shielded from any lawsuits or judgments against the LLC. In addition, an LLC can also provide some tax benefits. If you are the sole owner of an LLC, you can treat the LLC as a disregarded entity for tax purposes, which means that the income and losses from the LLC will flow through to your individual tax return. This can help to minimize your taxes in the event of a divorce.
Buy out your spouse’s interest in the property
If you’re worried about your spouse making a claim on your property in the event of a divorce, you may want to consider buying out their interest in the property. This can be a costly option, but it can help to ensure that your property remains yours and is not subject to any claims from your spouse.
Update your will and estate planning documents
If you have any concerns about what will happen to your property in the event of your death, you should update your will and estate planning documents. This may ensure that your wishes get carried out after your death and that your property goes to the people or organizations that you want it to go to.
If you don’t have updated beneficiary designations for all of your real estate holdings, make sure to do that as well.
Although divorce is rarely an easy process, taking steps to protect your real estate portfolio can help to make things a little bit easier. Doing so can also offer you some peace of mind during this difficult time.