When you are going through a divorce, every asset that is jointly owned must be divided including marital and vacation homes. When determining how to distribute these assets it is crucial that you understand your legal rights and options. Work with a skillful Bergen County property division lawyer for representation and experienced advice during your divorce.
What is Considered a Vacation Home in a Divorce?
During a divorce, having a clear understanding of all assets is crucial in ensuring that your rights are protected and the court can divide joint assets fairly, especially with a high-value property like a vacation home. But what is considered a vacation home?
For the purposes of a divorce, a vacation home is any property that is separate from the primary residence (the marital home) and is used mainly for vacations or leisure time. This house is not where the couple spends the majority of their time. Instead, they may visit for a getaway like to go to the beach, go skiing, etc.
How Are Vacation Homes Divided During Divorce?
Using equitable distribution, vacation homes can be divided using one of many methods. Consider the following options.
- Sell the property: The simplest way to divide the property is by putting it up for sale and splitting the profits based on equitable distribution. This way both spouses are awarded the monetary value of their share of the property.
- Buy someone out: Additionally, one spouse could “buy out” the other. In this example, the value of the property must be determined, as well as how much each spouse is entitled to. After doing so, the spouse who wants to keep the property must pay the other spouse the amount they would have received if they sold the home.
- Exchange other assets: If one spouse wants to maintain ownership they could also make a trade of other assets. After determining how much each spouse would receive from the sale of the home, the spouse who wants to keep the property could offer other joint assets of equal or greater value in exchange for the right to maintain ownership of the vacation property.
- Co-ownership: Some couples may choose not to divide the property at all and continue joint ownership. This may be a valid option if the home has sentimental value, the couple shares children and want them to continue having access to the property, they cannot decide what to do with it yet, etc. If the relationship between the pair is hostile or volatile this may not work, but it can be a temporary solution.
There are many unique and flexible ways that you can divide your vacation property during a divorce as long as the split is considered equitable and works for your situation. It is important that you understand your rights and obligations during the divorce process. Reach out to a skilled lawyer for more information today.
