If you’re divorcing and are part of a co-operative, there could be complications. The co-op is likely one of the most contentious parts of the divorce. While a home is an issue anyway, a co-op adds a whole different layer of problems to contend with.
One of the reasons that co-ops are so hard to deal with is because they’re normally in high-value areas. Spouses may fight over the location, knowing that to buy a home in the area would be cost-prohibitive compared to the co-op they already own.
Also a problem is the fact that with equitable distribution laws, it may be a necessity to sell the co-op. For that to happen successful, the board of directors would have to approve the new owners, a problem that isn’t always easy to overcome, especially if the people seeking to purchase the co-op can’t receive approval for one reason or another.
However, if you can sell, it may actually be for the best. With the real estate market as it is, finding a time when a home is at its highest value could legitimately support a divorce and encourage a great return on the investment. There isn’t a guarantee that any property will retain its value, even over time.
Divorce is hard, and when you add a co-op to the mix, it can become even more difficult. Fortunately, with the right help, you can decide how to divide your assets and if selling the co-op is really necessary at all. There may be other options that you could use to resolve your case.