Depends on how much “active” effort you put into the properties that may have increased their value. If you did nothing more than routine maintenance to the properties and your spouse did nothing to maintain them, the increase in value since marriage would likely stay yours.
If you made improvements to the rental property during the marriage it would be considered a marital asset. If you did any active work managing the rental property then the income derived from it could be considered marital property.
Helena M. Nevicosi
Attorney with Rosen Law Firm
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax
Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044
Durham & Chapel Hill Office
1829 East Franklin Street
Building 600
Chapel Hill, NC 27514
(919) 321.0780
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
Thanks to both Ryan and Helena for the responses.
It hadn’t crossed my mind that improvements made to residential rental property after marriage that I owned before marriage would be a marital asset, but that concept seems logical and fair.
Now I’m curious what is considered to be an “improvement.” Obviously adding a structure like a deck where none was before, or remodeling would be improvements.
Is replacing existing but expensive things like worn wall-to-wall carpeting or an unserviceable heating/AC system in a residential rental property considered to be an improvement or just normal maintenance? (Assuming the replacement is similiar to the item being replaced.)
Tumbleweed, the specific actions you described would normally be considered a repair.
Helena M. Nevicosi
Attorney with Rosen Law Firm
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax
Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044
Durham & Chapel Hill Office
1829 East Franklin Street
Building 600
Chapel Hill, NC 27514
(919) 321.0780
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
I owned rental real estate in NC prior to marriage; at the time of marriage and since then, rental income exceeded all rental property expenses – taxes, mortgage, repairs, etc. – so no “joint funds” were involved in supporting this investment.
Title to the properties has always been in my name only.
By about 10 years after marriage, all mortgages on these properties had been paid off.
In the event of divorce, is 100% of the rental property value and subsequent rental income considered to be solely mine, or, is my spouse under NC law entitled to some percentage of the rental real estate value and/or income?