Witherspoon and Phillippe make profit on investment property
Reese Witherspoon and Ryan Phillippe divorced in 2007, and even though their split made headlines, not all of their Ohio fans knew about their shared investment property. The property is a four-bedroom duplex in Los Angeles. The couple bought the property in October 2005 and held onto it through renovations and economic downturns. It was finally sold on Jan. 17 at a profit of more than $260,000.
The couple having kept a joint property throughout the property division process may be an unusual one – for many divorcing couples, it is important to immediately divide assets and liquidate shared properties in order to remove any financial entanglements still remaining. Sometimes, keeping a jointly owned property and then selling it can lead to a considerable profit when it is ultimately sold.
However, many investment properties need time, whether it is for renovations or waiting for the market to improve. Witherspoon and Phillippe held onto this particular property in the wake of two sales at a net loss – Witherspoon sold her California ranch for more than $800,000 less than what she originally paid, and Phillippe sold a Zen-influenced mansion for a loss of $1,175,000.
For many couples navigating divorces, a family law lawyer might aid in dividing shared properties and offer advice for minimizing financial and other entanglements if any couples do opt to keep shared properties until the time is right for resale. It may be possible for couples to maintain healthy working relationships while waiting to sell joint properties after divorce proceedings are complete.
Source: Forbes, “7 Years After Divorcing, Reese Witherspoon And Ryan Phillippe Sell Shared Los Angeles Investment Property“, February 07, 2014