How to Manage a Timeshare During Divorce

If you are fortunate enough to own a timeshare with a spouse, managing a timeshare during a divorce can be complex, as it involves both emotional and financial considerations. That said, there are always solutions to every aspect of divorce, which is where Onward comes in. Here are a few suggestions on how you can approach this often tricky subject

1. Identify Ownership Details

• Type of Ownership: Determine if the timeshare is deeded (real estate) or non-deeded (right-to-use or points-based).
• Ownership Status: Is the timeshare owned outright, or is there an outstanding loan or maintenance fees? Understanding these details is critical for equitable division.

2. Evaluate Its Value

• Market Value: Research the resale market for your timeshare. Keep in mind that timeshares often depreciate in value.
• Financial Obligations: Factor in maintenance fees, special assessments, and loan payments. Sometimes the costs outweigh the benefits.

3. Discuss Your Options

Depending on your financial and emotional goals, you can:

• Sell the Timeshare: Both parties agree to sell it and split the proceeds (or losses). Be aware of challenges in the resale market.
• Buy Out the Other Party: One spouse keeps the timeshare and compensates the other for their share of its value.
  Share It Post-Divorce: If both parties value the timeshare, you could set up an agreement for alternating use. However, this requires ongoing communication and cooperation.
• Give It Away or Donate It: If the timeshare has little to no value, donating or relinquishing it might be the best option.

4. Involve Professionals

• Real Estate Attorney: If the timeshare is deeded, an attorney can help transfer ownership.
• Divorce Mediator: A mediator can help negotiate a fair solution if you and your ex-spouse have differing views on how to handle the timeshare.
• Timeshare Specialists: Companies that specialize in selling or exiting timeshares can offer guidance, especially if selling it yourself proves difficult.

5. Address Tax Implications

If the timeshare is sold, there could be tax implications for capital gains or losses. Consult a tax professional to understand your responsibilities.

6. Update Documentation

If one party keeps the timeshare, ensure all relevant documents (deeds, loan agreements, maintenance contracts) are updated to reflect the new sole owner.