Things haven’t been fun, but you’ve finally reached a divorce settlement. On everything but the timeshare. Here’s what you need to know.
The good news is that the divorce rate in the United States has seen a steady drop in recent years. Marriage rates have been up and divorce rates enjoyed a 40-year low.
Still, the hard truth is that not all marriages work. Getting a divorce settlement that is fair and just for both parties is a necessity when a marriage doesn’t work any longer.
One of the biggest challenges in a divorce settlement is often timeshare ownership. That fun purchase you and your spouse made while on a vacation years back can prove a stubborn sticking point when divorce is looming.
In fact, you may have an iron clad agreement for your divorce settlement on everything but the timeshare.
Worried how to factor in your timeshare to your divorce? Here’s what you need to know:
Getting a Fair Appraisal
One of the problems with a timeshare in a divorce settlement is the appraisal. As you know since you purchased the timeshare, maintenance fees can rise steadily with a timeshare.
Most couples are searching for an agreement that frees them both from the marriage agreement. A settlement that includes long-term repayments for the possible liabilities is often uncomfortable.
Make sure to be careful and check with the Better Business Bureau before choosing an appraiser. There has been a precedent of timeshare appraisal schemes and getting fraudulent information will only make your divorce more complicated.
As with any other part of your shared estate, the timeshare ownership is shared property. It will be treated accordingly by the legal system.
You may even want to get an expert independent appraisal to try and factor in the issues prior to making any agreement.
A Timeshare Is a Property
Just as a owned home or a summer house is considered property, so too is a timeshare. And just with any other real estate transaction, the property may be worth more or less than what the original purchase price was.
With your home, you may find you have a mortgage that is underwater. The same could be true in some respects when it comes to making decisions about a timeshare.
Either way, this property is shared until the divorce settlement is final. Understanding demand and market trends will help you and your legal team make informed decisions about your preference for the timeshare.
You Have Options
Just as with any other piece of property, there are 3 main options when it comes to factoring your timeshare into a settlement for your divorce.
These options are:
You award the property to your spouse
You retain the timeshare
You decide to sell
And just like every other facet of a divorce, there are nuances that can affect the settlement when it comes to timeshares.
You Award the Property
What could be more simple? You decide to grant the timeshare property to your spouse.
In many cases, a timeshare is a valued property. We are in a new era of timeshare ownership that includes treasured memories and a special bond to a place.
Your spouse may want to continue to take your children to that special spot or love the property and the vacation potential.
But in other cases, the timeshare may not be wanted. You could be offering something with little value that is seen as a liability.
You Keep the Property
As we all know, not every divorce is simply about dollars and sense. Emotions run high and the stresses of ending a life partnership can get the best of one or both properties.
You and your spouse may be dealing with the emotional attachments as well as the financial worth of the timeshare. Or, the timeshare might be so ingrained in every other part of the divorce settlement it is nearly impossible to make a clear decision.
Know that if you keep the property there are risks involved. No one should get a timeshare award outright as part of a divorce without calculating the long-term costs.
While any property has liabilities and issues this can be especially true of a timeshare.
We all know of cases where a family is so attached to a home they fight bitterly over the property during a divorce. Sometimes neither spouse is willing to budge and they have to relent and sell the property, splitting the proceeds of the sale.
In these cases, where both parties can’t agree, there are few other options. But when it comes to timeshare ownership the option to sell is not always so cut and dried.
Couples find that the market is not always kind to timeshare sales. Take a quick search and you may find owners selling for a dollar just to get out from under the maintenance fees.
This is why many opt to dissolve the timeshare altogether. And also, the difficulties of selling are why it is so important to understand the liabilities and assets of the property.
An Asset Vs. A Liability in a Divorce Settlement
One of the more frustrating features of factoring your timeshare ownership into your divorce settlement is coming to understand the value of the timeshare itself.
Unfortunately, with escalating timeshare maintenance fees, the real cost of ownership can be difficult to pin down. In many cases, you and your spouse may find you are arguing over a liability rather than an asset when it comes to timeshare ownership in a divorce settlement.
Even if you have a capable lawyer they may be at a loss on how to calculate your timeshare’s value.
Get the Help You Need
In fact, in many cases, you may find it makes more sense to dissolve your ownership in a timeshare altogether rather than including it in a divorce settlement.
Neither you or your spouse wants to inherit a liability in a divorce agreement. But how can you know the full implications of your timeshare ownership?
Further, is it possible to get out if you need to? The team at Primo Management Group helps couples make tough decisions about their timeshares every day.
We can help free you from your timeshare. Contact us now to schedule a free consultation .