At the end of most divorces in Minnesota, all of the property is divided or disposed of, which might mean that the home you lived in during your marriage will be up for sale. The proceeds are usually divided in an equal fashion. If you are a real estate investor, you may have extra assets that you need to protect.
You can buy your spouse out
One of the easiest ways to protect your real estate assets in a divorce is to buy out your former spouse. This gets all of the properties you want to keep safely in your own name. You will need to hire a real estate professional to value up your portfolio. You can then offer your spouse a figure that covers their own share.
Use your assets to form an LLC
You can transfer all of your assets to an LLC. You control the company as its sole manager. If you do so before your marriage, the company will assume control during divorce proceedings. The assets then become non-marital property that is protected. This will help you keep your business and personal assets separate.
You can form a domestic asset trust
Your real estate properties and other assets need to be protected after a divorce. One of the best ways to do so is to form a domestic asset trust. The property is not in your name, but you can name yourself as the beneficiary. This is a move that leaves you in complete control of the assets.
It’s a good idea to talk to your financial advisor to prepare a full protection plan. The more you plan in advance, the better chance you have of keeping your assets.