Your family enjoyed many happy vacations in that timeshare along the Michigan shore, but they are about to change or come to an end.
You and your spouse are divorcing, and you need to figure out how to divide both your assets and liabilities. The timeshare is one of them.
There generally are three options when it comes to timeshares and divorce.
- Share it. You both want to continue using the property and continuing the summer tradition with the kids. Since you’ve already paid many of the expenses for the unit, you look at it as a relatively inexpensive vacation option in a time when you might have less disposable income. If you have an amicable relationship, this is an option. Be sure to include it in your divorce agreement, however. Who will get to use the timeshare at which times? Who will pay any maintenance fees? Will you be able to swap weeks or trade the timeshare asset for a week at another resort? All of these issues and more should be addressed.
- Sell it. There is a large resale market for timeshares and you could find a buyer. There also are brokers, but be sure to find a reputable one. The developer of the timeshare also could have a staff member who can help with the process.
- Buy out your spouse. The timeshare could hold better memories or be more important to you than to your spouse. In that case, you can execute a buy-out agreement at the time of your divorce. You can pay your spouse half of the timeshare’s value or give them the rights to another jointly held asset. The toughest part of this is figuring out the value of the timeshare, and it is possible to have it assessed.
Your divorce attorney will be able to help you evaluate the options available.