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What are the options for your vacation home in your divorce?

On Behalf of | Nov 22, 2023 | Divorce

The property involved in a high-asset divorce can be significant. Figuring out how to split them during the property division process can be challenging at best, and the outcome of your property division can shape what your post-divorce life will look like for a long time to come. With that in mind, you need to be armed with a strong strategy going into property division negotiations and litigation.

But if you own a vacation home, then things can get more complicated than you expect. After all, you probably have fond memories of time spent at your vacation property, and parting with it can be difficult to contemplate.

Fortunately, you’ve got some time to consider your options. In fact, either you or your spouse may end up staying at the vacation property during the pendency of your divorce case. So, be sure to fully analyze your options before choosing one.

What are your options when it comes to dealing with a vacation home?

There’s no one right way to deal with your vacation home. The best route for you is going to depend on what you want out of the future and the other assets in play. So, let’s take a closer look at some of the options that are available to you:

  • Continue to co-own the property for secondary income: You and your spouse can continue to own your vacation property without having to see each other. This can be a good option if you’re looking to keep vacation rental income or convert the property into a short-term rental. If you pick this option, you’ll just need to ensure that you have a clear written agreement with your spouse about how income will be divided, how repairs and maintenance will be paid for, and how the property will be used when it’s not being rented out.
  • Sell the property for profit: If the idea of co-ownership puts your stomach in knots, then you might want to offload the property by selling it. You want to make sure you get a fair price for your vacation home, and you’ll want to have a clear understanding of how any profits will be divided with your spouse before moving forward with this option.
  • Trade your interest in the vacation home for other marital assets: The value of a vacation property can give you bargaining power when it comes to dividing other assets. For example, if you want to secure a larger portion of your marital retirement portfolio, then you might want to think about allowing your spouse to keep the vacation home in exchange for a larger part of retirement assets.
  • Buy your spouse out: If you want to continue to own the vacation property free and clear, then you’ll need to be prepared to buy your spouse out of their interest. This can be costly, and you’ll want to keep in mind the costs associated with maintaining the property on your own, but it’s a strong option if you want to keep the property to yourself.

Competently and confidently navigate your high-asset divorce

High-asset divorces are unique in that you can face several challenges when it comes to dividing your marital property and fighting over what property should be included in the marital estate. To protect your future as fully as possible, you need to be armed with a strong strategy going into your divorce. That’s why now is the time to start analyzing your estate and what you can do to get what you deserve. Only then will you be comfortable and confident moving forward with your case.