Divorce negotiations can become heated during property settlement decisions. Family homes, vacations homes, cars, boats, and other tangible property must be divided among the couple, causing emotions to run high. One of the more recent issues is who will gain the timeshare that was purchased during the marriage.
Many young couples agree to invest in a timeshare to provide for their vacation fun during the marriage. A timeshare is a property investment that the couple owns, complete with fluctuating value and maintenance fees. For some, relinquishing the timeshare to the ex-spouse is more valuable than keeping it. In other cases, the value of the timeshare may have increased, causing couples to argue over who has the right to keep the property in the divorce settlement.
In many divorces, a timeshare holds a sentimental value that cannot be measured in dollars. A timeshare could have been purchased for a favorite vacation spot, involve traditions that include relatives and friends, or holds fond memories of happier times. Negotiations about the timeshare can be complicated by emotions, such as resentment, anger, and hurt feelings.
Options for Timeshares in a Divorce Settlement
Divorcing spouses have three options when deciding who gains the timeshare. Because each divorce is unique, the reasons for wanting to keep or relinquish the timeshare vary greatly. Each spouse has one of three options to choose from:
Award the Timeshare: When financial or emotional values are not attached to a timeshare, a spouse can elect to award it to their ex-spouse. In this case, it is important to determine the value of the timeshare. Since the timeshare is considered tangible property, its value or liability will be split among each spouse. If there is debt involved, it is vital to establish terms of repayment.
Sell the Timeshare: Selling the timeshare may be a viable solution when a divorcing couple cannot amicably decide who should ultimately keep it in the divorce settlement. Obtaining an accurate appraisal of the worth is imperative. There will be costs involved in the sale of the property, so the couple must decide if they will use joint resources to pay for them before the divorce, or how the paying spouse will be reimbursed after the divorce. There are also tax considerations that should be considered before the final sale.
Share the Timeshare: In some cases, a divorcing couple may be able to share their investment in years to come post-divorce. This arrangement will take careful planning as the future can change how one feels about their arrangement. Remarriage may result in a new spouse not wanting the timeshare included in their new marriage. Arrangements on payments, vacation schedules, and flexibility in unforeseen circumstances can fluctuate and cause problems in the future. If one spouse fails to keep up their payments or forfeits on their agreement, there could be serious financial consequences.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Help Clients Establish Amicable Divorce Settlements
If you or someone you know is considering a divorce, the experienced team of Towson divorce lawyers at Huesman, Jones & Miles, LLC can help. Call us at 443-589-0150 or contact us online to schedule a free consultation today. Our offices are in Hunt Valley and Towson, Maryland, and we proudly serve clients throughout Baltimore, Baltimore County, Bel Air, Columbia, Westminster, Essex, Monkton, Sparks, Parkton, Pikesville, Carroll County, Harford County, and Howard County.