Going through a divorce means having to split up everything from the marital home to other real property. Some couples have amassed considerable assets, such as vacation homes.
Determining what to do with the vacation home is often a major component of property division in divorce. There are several factors that someone in this position must consider when they’re trying to decide what to do with the vacation home.
Options for the vacation home
Sometimes, the vacation home is sold to pay off debts. This can give both parties a fresh start so they don’t have to worry about paying those after the divorce.
It’s also possible for one party to buy the other party out. In some cases, one party will keep the marital home and the other will keep the vacation home. This may be a good option when one person wants to move away from where they built the marriage.
Another option is for both parties to continue to co-own the vacation home. In this case, they will need to ensure they have a concise agreement that outlines things like how maintenance, upkeep and regular expenses will be handled, as well as how any income from the property may be divided.
Determining what to do with the vacation home is only one component of the property division process that has to be completed. It may behoove parties in this position to carefully consider how all assets and debts will be divided so they can ensure they walk away with a settlement in their best interests.