Dividing property during a Massachusetts divorce can become more complicated when spouses own real estate or other assets in another state. Massachusetts courts generally have the authority to include out-of-state property when dividing the marital estate, but special rules may apply when transferring ownership of those assets. Understanding how courts handle out-of-state property can help you protect your interests and prepare for the divorce process.
Does Massachusetts have jurisdiction over out-of-state property?
Massachusetts uses equitable distribution to divide marital property. Courts try to split assets fairly, but not always equally. The good news is that Massachusetts courts generally have the authority to divide all marital property, regardless of where it is located.
If you file for divorce, the court can split your out-of-state real estate and other assets. Though Massachusetts courts can divide property regardless of location, they cannot directly transfer ownership of real estate in another state. This is because property titles are controlled by the laws of the state where the property is physically located.
How does the division process work?
The court will include your out-of-state property when determining the overall marital estate. Judges consider various factors when dividing property, which may include:
- The length of your marriage
- Each spouse’s contribution to acquiring assets
- Your respective economic circumstances
- The needs of any children involved
Massachusetts law also requires judges to consider how each spouse managed and helped grow marital assets during the marriage. Additionally, judges look at each spouse’s opportunity for future acquisition of assets and income. Unlike community property states that split assets 50-50, Massachusetts gives judges discretion to divide property in whatever manner they deem fair based on these factors.
For out-of-state real estate, the court often orders one spouse to sign a deed that transfers ownership to the other spouse. Alternatively, the court might order the property to be sold and the proceeds split between the spouses. You may also need to record these transfers in the state where the property is located to make them official.
What else should you consider?
It is important to provide complete information about all property you own, regardless of location. Failing to disclose assets can result in serious legal consequences. You should also consider the tax implications of transferring or selling out-of-state property, as different states have varying tax laws.
If you own significant assets in another state, you might want to consult an attorney familiar with both Massachusetts law and the laws of the state where your property is located. This can help ensure that property transfers are handled correctly and that you understand the full implications of any settlement or court order.
Take action to protect your assets
Start by making a complete list of your assets, including property in other states. Gather deeds, mortgage records, tax documents and other important paperwork. Then talk with an attorney who understands Massachusetts divorce law and the laws in the state where you own property. Taking these steps can help you avoid delays, reduce disputes and protect your financial interests.
Address tax implications early and stay proactive about disclosure requirements. By taking these steps now, you may position yourself for a fairer settlement and protect your interests during the divorce.
