A vacation home is a property where families can relax and create memories. These homes are often a source of pride, but they can become a significant challenge if the owners decide that they’re going to divorce.
In most cases, vacation homes are considered marital property, which means that they have to be divided during the property division aspect of the divorce. This may not be as easy as it sounds.
Options for the vacation home
One option for the vacation home is for one person to keep the vacation home while the other keeps the marital home. This isn’t always possible, particularly if neither party will be able to use the vacation home due to the distance from where they will reside after the divorce.
Another option is for the vacation home to be sold. Depending on the sale price and what’s owed on the vacation home, there may be money left from the sale that the parties can use to pay off other marital debts. If there aren’t any marital debts, they may split the proceeds from the sale of the vacation home.
It’s also possible that both parties may opt to co-own the property together. This requires a written contract, so both parties know how everything will be handled. Consider things like who will use the property when, how expenses from the property will be paid, who is responsible for the care and how any profits will be divided.
Ultimately, the vacation home is only one thing to consider during the property division process. It may be beneficial to work with someone familiar with these matters so they can assist with determining how each option may affect you now and into the future.