Vacation homes enable families to have a dedicated place to enjoy holidays and vacations. These assets can bring a lot of joy to the family, but they can also become a challenge to handle during divorce.
The emotional and financial investments in these homes can make them difficult to part with. Whether you’re dealing with a beachfront property, a cabin in the mountains or a property in any other location, understanding the considerations that you should think about during the property division process may make it easier to make a decision.
Is the property separate or marital property?
If the vacation home is covered by a prenuptial agreement, the terms of that agreement will be followed. If there’s not a prenup, it must be determined if the property is separate or marital property. If it’s separate property, it will go to the person who owns it. If it’s marital property, it must go through the property division process.
Does either party want the vacation home?
If one party wants the vacation home and the other doesn’t, the property division process may be able to be worked so that person can get it in exchange for other assets. Other options include selling the vacation home or owning it together to use as an income-generating property.
Vacation homes come with considerable expenses, such as insurance, taxes, upkeep, maintenance and possibly a mortgage payment. If either party is considering trying to keep the home, they must consider those costs. Working with someone who’s familiar with high-asset divorces may reduce the stress that comes with these matters.