The division of assets and liabilities is an essential part of the divorce process. Just as every couple is unique, so is their financial landscape. Most divorcing spouses have to navigate the allocation of homes, vehicles, retirement monies, and other common assets.
In some divorces, there is yet another asset that can be a bit more challenging to divide. Timeshares may seem like a great idea; they offer the promise of a regular vacation in a favorite destination. Yet as the years go by and the restrictions, taxes, and maintenance fees become more cumbersome, they may not be as desirable an asset as they once were.
What Do You Do with the Timeshare?
Couples have several options for what to do with a timeshare in the divorce. Like a primary home, vacation home, or income property, a timeshare’s value inevitably fluctuates over time. Before making any major decisions about the future of your timeshare, it is important to have its value appraised. Depending upon market trends and demand, your timeshare may be easier or more difficult to unload.
After your timeshare is appraised, you can make an informed decision about its future. Here is a brief look at your options if you own a timeshare and are considering a divorce:
- Award: In this scenario, you give the timeshare to your ex. This works if they want it more than you do and can afford to maintain it independently. They will buy out your portion of the property with cash or other assets.
- Buy: If you are the spouse with the sentimental attachment to the vacation timeshare, you can propose to buy out your ex with cash or assets, equivalent to your half of the timeshare.
- Share: A third option is to move forward with the divorce and agree to share the timeshare. Because timeshare stipulations are already complicated to begin with, it can be a headache to determine which spouse gets which vacation time and who pays various fees associated with the property.
- Sell: Many couples opt to sell their timeshare in the divorce. Unfortunately, because they tend to depreciate over time, timeshares often become a liability, rather than an asset, making them difficult to sell. If this is still the best option for you, selling before the divorce is final allows you to pay closing costs or other related fees with joint accounts.
Valuing the Timeshare
Many families find that timeshares are ideal for their lifestyles. Yet when couples split, deciding what to do with the timeshare can be a tricky decision. Their value is not always apparent, and they can even become a costly liability that neither spouse wants to hold on to indefinitely.
After your timeshare appraisal, it is a good idea to contact a Morristown divorce lawyer to look at your overall financial picture and explain your property division options in greater detail.
Morristown Divorce Lawyers at Lyons & Associates, P.C. Help to Protect your Financial Future after Divorce
If you have questions about your financial future after divorce, schedule a free consultation with a competent Morristown divorce lawyer at Lyons & Associates, P.C. We understand the prospect of dividing everything you have acquired throughout your marriage can be overwhelming. We are here to make the process as simple as possible, while protecting your interests and setting you up for a great future.
Call 908-575-9777 or use our online contact form to get started. Our Morristown, New Jersey offices serve clients throughout New Jersey, including Morristown, Somerville, Somerset, Woodbridge, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, and Morris Plains.