Should we sell or keep our duplex during our divorce

[Kyle Nacci]

Hello,

My wife and I co-own a duplex and are seeking a divorce. She would like us to each own one of the units rather than selling. Both of us are on the title, and it’s just me on the mortgage. She doesn’t have the income to buy me out and refinance in her name. Utilities are already separate for each side, and I’ve talked to a lawyer about adding a clause that states that either of us can force a sale or buy the other out if one of us doesn’t pay their half of the mortgage, insurance and property tax.

My plan is to hire a property manager so that my ex and I don’t need to be in touch about anything related to the property other than when the day comes that we want to sell it. I’ve run the numbers and I think I can make about $1,500 of profit per month after mortgage, insurance, taxes and utilities have been paid and 10% has been paid to a property manager. Over the next 30 years I expect to make close to $1M (more if accounting for inflation) by renting and then selling in 30 years, whereas if we sold now I’d make at most $100K from the sale. So holding seems best financially.

However, a few friends and family have raised concerns about whether my ex and I continuing to co-own this property will cause a lot of stress for us over the years and make it difficult for us to maintain a healthy relationships with another partner. I’m struggling to understand that perspective because it seems to me like if I have a property manager, they would be the one to contact about anything related to both sides of the duplex, and I don’t foresee my ex and I needing to be in touch until the day comes when we want to sell.

Am I missing something? What would you do in this situation?