Divorce and owning properties together

[aroundtheworld]

What is the name of your state? MI.
My husband and I have been married for almost 20 years. We have two young children. We own some valuable pieces of real estate that produce good income. We want to get a divorce and I will be the primary caretaker of the children. Everything we own will eventually go to the children and we do not want to split asset during the divorce. What is the best way to jointly own properties when divorced?. Can we put everything in an irrevocable trust and make one of us the beneficiary when one of us dies.

 

[Just Blue]

What is the name of your state? MI.
My husband and I have been married for almost 20 years. We have two young children. We own some valuable pieces of real estate that produce good income. We want to get a divorce and I will be the primary caretaker of the children. Everything we own will eventually go to the children and we do not want to split asset during the divorce. What is the best way to jointly own properties when divorced?. Can we put everything in an irrevocable trust and make one of us the beneficiary when one of us dies.

Are both you and he retaining attorneys for your divorce? If so, you should discuss your best options with your attorney(s).

 

[LdiJ]

What is the name of your state? MI.
My husband and I have been married for almost 20 years. We have two young children. We own some valuable pieces of real estate that produce good income. We want to get a divorce and I will be the primary caretaker of the children. Everything we own will eventually go to the children and we do not want to split asset during the divorce. What is the best way to jointly own properties when divorced?. Can we put everything in an irrevocable trust and make one of us the beneficiary when one of us dies.

If you want everything to go to the children, you could do an irrevocable trust with the two of you being the beneficiaries during your lifetime, with the children being the beneficiaries after you pass away. In other words, whoever dies first their share of the trust would go to the children, while the other spouse retains their share until they die.

 

[Zigner]

If you want everything to go to the children, you could do an irrevocable trust with the two of you being the beneficiaries during your lifetime, with the children being the beneficiaries after you pass away. In other words, whoever dies first their share of the trust would go to the children, while the other spouse retains their share until they die.

While that is a way to do it, it's likely not a wise way to do it. The OP and their spouse should speak with an estate planning pro and divorce attorneys.

 

[Taxing Matters]

If you want everything to go to the children, you could do an irrevocable trust with the two of you being the beneficiaries during your lifetime, with the children being the beneficiaries after you pass away. In other words, whoever dies first their share of the trust would go to the children, while the other spouse retains their share until they die.

While they could do that, it wouldn't be my first recommendation to most of my estate planning clients. And if they do go that route, it would definitely not be a do it yourself project. The trust would need to be carefully drafted, including making sure that the trust will qualify as a grantor trust. The OP and spouse really should consult an estate planning attorney about the best way to achieve their goals given their particular situation.

 

[AlmostThere]

There are many potential issues with the scenario you are describing.
What if the properties begin to lose money? What if neither of your children wishes to or is capable of managing income properties? What if you or your soon-to-be ex run into hard times? Who is responsible for the upkeep of the properties? etc..

Talk to your lawyers.

 

[aroundtheworld]

There are many potential issues with the scenario you are describing.
What if the properties begin to lose money? What if neither of your children wishes to or is capable of managing income properties? What if you or your soon-to-be ex run into hard times? Who is responsible for the upkeep of the properties? etc..

Talk to your lawyers.

We hope to be both responsible for the upkeep of the properties. I am not worried that the properties will lose money but I do question if the childen will like to continue to own the properties. Is there a way that we can put a clause that the properties be liquidated if both the children agree or one of them will buy out the other if one wants to get out of the family business?

 

[Zigner]

We hope to be both responsible for the upkeep of the properties. I am not worried that the properties will lose money but I do question if the childen will like to continue to own the properties. Is there a way that we can put a clause that the properties be liquidated if both the children agree or one of them will buy out the other if one wants to get out of the family business?

You can do tons of stuff. Your estate planning pro can explain it to you.

 

[stealth2]

This really should not be a DIY project. As advised, consult with an estate-planning professional and then get the details memorialized via an attorney.

 

[zddoodah]

we do not want to split asset during the divorce.

Why?

What is the best way to jointly own properties when divorced?

Not really sure what you mean by this, but none of the anonymous strangers who post here (many of whom are not lawyers) have the vaguest clue what might be best for you or what might be best for your husband (two things that won't necessary be the same).

Can we put everything in an irrevocable trust and make one of us the beneficiary when one of us dies.

There are dozens and dozens of things you can do. I suggest that each of you sit down with an attorney to discuss options.

Is there a way that we can put a clause that the properties be liquidated if both the children agree or one of them will buy out the other if one wants to get out of the family business?

A clause in what? You can put any clause you want in anything. Determining whether any particular "clause" is a good idea for you or for your husband is not something folks on the internet can do intelligently.

 

[bracknelson]

There are many potential issues with the scenario you are describing.
What if the properties begin to lose money? What if neither of your children wishes to or is capable of managing income properties? What if you or your soon-to-be ex run into hard times? Who is responsible for the upkeep of the properties? etc..

Talk to your lawyers.

Quite agree with you, in this matter, many outcomes can come out and can affect the whole scenario. Taking divorce may easy but its consequences can be more than what you think. So all you need is to talk to a lawyer who can suggest to you the best alternative to make this matter easy to solve.