Many couples in the Denver, Colorado, area may make some extra income, or even support themselves, through rental property or investment real estate. Owning extra property can be helpful to a family in two respects. It can be a source of income, and it can also yield a return on the investment as housing prices increase.
However, for these same reasons, investment property can present complications in a high-asset divorce or legal separation. Specifically, it can be difficult to put a precise value on rental property, which in turn means that the property is more difficult to divide up.
While there are a number of ways in which a couple, or a court, can put a value on investment property, the bottom line is that putting a price tag on this type of real estate, without actually putting it on the market, is no simple affair. Specifically, valuing investment real estate it is not always just a matter of looking at comparable pieces of property, which sold recently.
For one, this approach does not fully account for the fact that investment property also produces a stream of income which the owner can then re-invest. Moreover, particular if the investment property is office space or other commercial real estate, finding a good comparable property that recently sold can be difficult. Couples who have investment property and who are looking at an impending divorce or separation are likely going to require assistance in order to make sure that property gets divided fairly.