Chicago divorce attorney Russell D. Knight (https://rdklegal.com/rental-property-in-an-illinois-divorce/) of the Law Office of Russell D. Knight has recently published a comprehensive article examining the complex matter of rental properties in Illinois divorces. Titled "Rental Property in an Illinois Divorce," the article discusses the multifaceted issues that arise when rental properties are involved in marital dissolution, offering valuable guidance for individuals navigating these challenging circumstances.
Chicago divorce attorney Russell D. Knight highlights the importance of determining whether rental property is classified as marital or non-marital. "In Illinois, the first step in determining what happens with any property in a divorce is determining whether that property is marital or non-marital," notes Knight. This distinction is crucial, as it influences how the property and its generated income are divided between the parties.
The article outlines the advantages and disadvantages of owning real estate as an investment. While real estate can provide significant returns through borrowing, tax deductions, and rental income, it also comes with obligations such as maintenance, property taxes, and the inability to sell in portions like stocks or bonds. Chicago divorce attorney Russell D. Knight addresses these points in detail, helping readers understand the broader context of real estate investment in the scope of a divorce.
Knight's article further explores the valuation and division of rental properties deemed marital. Real estate, unlike other assets, cannot be physically divided, necessitating an appraisal to determine its value. "People have an unusual attachment to real estate and don’t typically treat it as a fungible asset that can be bought and sold like a stock," explains Knight. This emotional attachment often complicates the process, requiring professional appraisal and sometimes resulting in the sale of the property to achieve an equitable division.
Another critical aspect discussed is the handling of income from rental properties. The income generated from rents impacts both child support and maintenance calculations. As Knight points out, "Income has a big impact on divorced parties because child support and maintenance are determined by the parties’ net incomes." The article clarifies that while income during a marriage is usually considered marital, there are exceptions, particularly concerning non-marital properties and the efforts contributing to that income.
Knight also examines the practical considerations of managing rental properties during and after a divorce. He emphasizes that rental properties can continue to operate as businesses post-divorce, with both parties possibly retaining ownership through a corporation or LLC. Such arrangements would need to be carefully structured within the Marital Settlement Agreement, including provisions for buy-out clauses if either party wishes to exit the business arrangement.
For those facing the prospect of divorce with rental properties at stake, Knight's article provides crucial insights and practical advice. The complexities outlined underscore the necessity of informed legal counsel to navigate these issues effectively. "If you and/or your spouse own rental property and are getting a divorce, you have a lot of hard decisions as to what will happen to this property," Knight advises, urging individuals to seek professional guidance to explore their options.
Chicago divorce attorney Russell D. Knight's article is an essential resource for anyone dealing with rental properties in a divorce. It offers a thorough examination of the legal, financial, and emotional challenges involved, and equips readers with the knowledge needed to make informed decisions.
This article not only underscores Knight's deep understanding of divorce law but also his commitment to providing clear, actionable advice for those facing these difficult situations. For more detailed information and personalized consultation, individuals are encouraged to contact the Law Office of Russell D. Knight.
About the Law Office of Russell D. Knight:
The Law Office of Russell D. Knight is a Chicago-based family law firm dedicated to assisting clients through complex legal matters with compassion and professionalism. The firm can offer a range of services, including divorce, child custody, and support, focusing on achieving fair and equitable outcomes for their clients. Led by Russell D. Knight, the team brings extensive experience and a client-centered approach to every case.
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