Who Gets What? Navigating Divorce When You Own Multiple Properties
- DAC Team
- Jul 8
- 4 min read
Divorce is never simple—but when a couple owns more than just the family home, the process of dividing assets can quickly become overwhelming. Whether it’s a vacation house, rental units, or investment properties, multiple real estate holdings add both financial and emotional complexity to an already difficult transition.
So how do you fairly divide real estate in #divorce? And what if only one spouse’s name is on the deed? What about rental income? Tax implications? There’s a lot to unpack. In this post, we’ll walk you through key considerations, common examples, and the professionals who can help you move forward with clarity and confidence.
Common Scenarios in Divorces Involving Multiple Properties
Let’s look at how real-life situations can complicate the picture—and how they’re typically handled.
1. The Family Home + a Vacation Property
Example:
You and your spouse own your primary residence and a lake house that’s used for family getaways.
What to consider:
Which property does each person want to keep, if any?
Can either of you afford to buy the other out of their share?
Is the vacation home considered marital property or was it inherited/separately purchased?
Possible outcome:
One spouse keeps the family home while the other retains the vacation home, with an equalization payment if there’s a value gap.
2. Rental or Investment Properties
Example:
You own three rental units jointly, and they provide steady income.
What to consider:
Who manages the properties—and will that continue post-divorce?
Are both parties entitled to future rental income?
How will capital gains taxes be handled if you sell?
Possible outcome:
Sell and split proceeds.
One spouse keeps the rentals and compensates the other with equity or spousal support.
Properties are placed in a trust or LLC and co-managed post-divorce (rare but possible with amicable couples).
3. Properties Held in One Spouse’s Name
Example:
Your spouse purchased a condo before marriage, but it was rented out and maintained using joint funds.
What to consider:
Was there a prenuptial agreement?
Has the property appreciated due to joint contributions (repairs, mortgage payments)?
Is it separate property or has it become commingled?
Possible outcome:
Even if the title is in one name, courts may consider the property marital if both parties contributed to its value, and a share of that appreciation may be subject to division.
Key Steps for Handling Real Estate Division in Divorce
Dividing property is about more than just deciding who gets what—it’s about protecting your financial future. Here’s how to approach it strategically:
1. Get a Professional Appraisal
Accurate property valuations are essential. Have each home, rental, or investment property appraised by a licensed real estate appraiser. If both spouses get separate appraisals, a neutral third-party valuation may be used for mediation.
2. Gather Financial Documentation
This includes:
Purchase documents
Mortgage statements
Tax returns
Rental income records
Maintenance and repair costs
Any pre- or postnuptial agreements
Having clear records helps your legal team evaluate each asset’s value and potential impact on the divorce settlement.
3. Consider Tax Implications
Capital gains taxes, mortgage interest deductions, and rental income taxes can all affect the real estate division. A certified divorce financial analyst (CDFA) or tax professional can help you plan ahead.
4. Decide: Sell, Buy Out, or Co-Own
Every couple’s solution is different:
Sell and split proceeds (clean break)
Buy out the other’s share (often preferred when children are involved)
Co-own temporarily (used when selling immediately isn’t viable)
Be realistic about your post-divorce financial capacity—can you afford mortgage payments, maintenance, and taxes on your own?
Professionals You Should Involve
Navigating real estate in divorce is a team effort. Here are the key people you’ll want on your side:
Family Law Attorney: Ensures your rights are protected and negotiates fair division.
Real Estate Appraiser: Provides unbiased property valuations.
Certified Divorce Financial Analyst (CDFA): Helps analyze the short- and long-term impact of different property settlement options.
Mediator (Optional): If you and your spouse prefer a less adversarial process, a mediator can help facilitate cooperative decisions.
Real Estate Agent (if selling): Especially one experienced in divorce-related sales, who can coordinate showings and pricing without adding to the tension.
Owning multiple properties can be a symbol of success—but in divorce, it’s also a source of stress. These assets often hold both financial and emotional weight, and dividing them fairly requires a combination of strategy, legal knowledge, and often, compromise.
If you’re facing divorce and unsure how to handle your real estate holdings, don’t go it alone. Reach out to a trusted family law #attorney who can guide you through the process with clarity and compassion. At Hulse Family Law, we understand that every home has a history—and we’re here to help you protect your future.
Want to dive deeper into how real estate, mortgages, and finances impact your divorce?
Join us at one of our Divorce Bootcamps—a free, supportive workshop where you can hear directly from a Certified Divorce Realtor® and a trusted Mortgage Lender. You’ll get practical, professional advice from Colorados top divorce team tailored to your situation and leave feeling more informed and empowered about your next steps.
👉 Reserve your spot today and take the first step toward clarity, confidence, and a fresh start.
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