Going through a divorce is not a simple or easy thing to do. Trying to get through the asset division process can be extremely taxing if you have complicated shared assets. One example of these assets is the family vacation home. There are several ways the issue of ownership of a vacation home can resolve in a divorce. Knowing what to expect can help you prepare for the outcome you are looking for, so here are the three common outcomes of vacation home ownership in a divorce:
Co-ownership
If the divorce is amicable or the spouses are both interested in keeping the home, co-ownership is a viable option. As part of the divorce negotiation, the separating couple may decide on something similar to a timeshare agreement to ensure both parties have access to the home without disturbing the other.
Buyout
During asset division negotiations, one spouse may be able to acquire sole ownership of the vacation home. This can typically be done by either offering a cash payment for total ownership or exchanging another asset for total ownership, such as the primary home. No matter the method, spouses should always secure a fair valuation of the property before any ownership transfer occurs.
Total sale
Sometimes, spouses cannot agree on a sale arrangement or do not want to continue owning the house for personal reasons. No matter the motive, if both spouses are willing to part with the vacation home, they can sell the property. They will need to decide how the profits of the sale will divide between them, which is another conversation for the asset division process.
Prepare for the outcome you want
Going into asset division negotiations blind is a decision that can cost you far more than you deserve to miss out on. Instead of going into negotiations without a plan, work with a divorce attorney to develop a strategy that you can count on to help you earn the outcome you are looking for.