Beach houses, hunting cabins and other properties only intended for part-time use can be investments and sources of pleasant memories for everyone in a family. However, they can also become complicating elements if the owners divorce. Vacation homes do not necessarily have the same emotional value as a primary residence, but they can still be a treasured location that has personal value to both spouses.
How can spouses address their vacation homes as they negotiate property division matters during a divorce?
One spouse can keep the vacation home
Sometimes, only one spouse wants to keep the vacation home or can reasonably afford it in addition to managing the cost of a primary residence. After an appraisal to estimate its value, the spouse keeping the vacation home can refinance. The spouses can also use the accumulated equity to balance other property division choices.
There are numerous alternative arrangements
If neither spouse wants to keep the vacation home or can afford it on their own, this approach might be the best solution. In some cases, couples may agree to continue joint ownership of the vacation home.
If they share children, this arrangement allows both parents to continue enjoying the vacation home with the children during breaks from school when they have parenting time. They can then make plans to transfer ownership to their children when they become adults or negotiate arrangements in advance for the sale of the property when all of the children leave home.
There is no one correct solution for addressing the equity accumulated in a vacation home when owners divorce. Determining what a vacation home is worth and setting clear priorities are both important steps for those facing high-asset divorces with complex marital estates.
