Timeshares are often an effective way for ordinary people to enjoy the jet setter lifestyle. After all, for just a fraction of the cost of buying a vacation property, you have access to a piece of paradise a few days each year. While you may love sharing your timeshare with your spouse, deciding what to do with its ownership after your divorce may present some unique challenges.
If you purchased your timeshare interest after your marriage, there is a good chance it is marital property. As such, you and your spouse likely have an equitable interest in the timeshare. During your divorce, though, you must think about what you plan to do with that interest. Here are some ways your timeshare may complicate your divorce:
You may have a hard time valuing your timeshare
The timeshare market can be unpredictable. While investing in certain timeshares makes good financial sense, often they depreciate over time. Put simply, your timeshare may be worth less than you think. You may also have a difficult time determining its market value. Either way, selling your timeshare during or after a divorce may be tough.
You may need to become the buyer
Because selling your timeshare to a third party can be difficult, you may need to become the buyer. That is, you may choose to purchase your partner’s ownership interest. If you go this route, you likely need to obtain an independent appraisal. Then, you may either choose to pay cash or give up other assets to secure exclusive ownership of the timeshare.
You may decide to split your timeshare
Like with many marital assets, it is possible to split timeshare ownership after a divorce. If you and your soon-to-be-ex-spouse love visiting the timeshare, keeping it may make sense. As you may suspect, though, you need to come up with a set of rules about occupancy. You must also decide when both you and your former partner may occupy the property. When doing so, check your timeshare’s ownership guidelines to be certain your plan does not violate policy.
As you can see, figuring out what to do with a timeshare after divorce may require thinking outside the box. While you may have to treat the property differently than other marital assets, you likely have some options. By understanding the challenges timeshares often present, you can better strategize for dealing with yours.