Divorce is a complicated process that can become even more frustrating when it involves deciding what to do about the timeshare you bought with your soon to be ex. If you don’t address how to handle your timeshare early in the divorce process, you risk prolonging proceedings and making an already difficult process even harder. Here are a few things to consider if you own a timeshare and are dealing with the process of getting a divorce:
1 – Determine which one of you (if either) wants to claim sole ownership of the timeshare
You may be in a situation where one of you wants to keep the timeshare, while the other is ready to let it go. If that is the case, make sure whoever is relinquishing their portion gets their name officially removed from the contract. Failure to do so can put you at risk for being held financially responsible for something you didn’t think you owned anymore.
If you run into a situation where you both want the timeshare, you may be able to work out an agreement that details usage rights and payment responsibilities. Keep in mind that if you decide to go this route – you are linking yourself to your ex-spouse for the entirety of your ownership (usually forever.)
2 – Whatever you decide and agree upon—make sure you have it in writing and that it has been signed off on by both parties.
Who is responsible for the maintenance fees? Do you still owe on your mortgage? Who is responsible for paying the remaining balance?
If one of you is taking over ownership, then they should be in charge of the associated costs, but it will still need to be factored into your overall divisible assets/liabilities. If you are splitting the timeshare, this is especially important because both of your names are still on the contract. Let’s say you decide to trade off using the timeshare every other year. If either of you misses a payment when it is their turn, both of you are still held liable. Protect yourself and place your agreements into a contract that is signed by both parties and filed with the courts in your divorce agreement.
3 – If neither party is interested in keeping the timeshare, an agreement needs to be made on how to move forward.
You both are ready to say goodbye to each other and that timeshare. Now what?
You could attempt to sell your timeshare – but this is much more difficult then most would realize. Timeshares have been around for decades, meaning there is a huge inventory of timeshares for sale. Supply outpaces demand, and values drop – sometimes to as low as $1. Often, people struggle to even give their timeshares away.
If you decide to try and sell your timeshare, make sure you do your research and go with a reputable company. Since the timeshare resale industry is full of scams, you don’t want to fall victim to an unscrupulous scheme. If you have to pay an upfront fee to list, or if they promise they have a buyer for you right off the bat – be extremely cautious.
Another option is to exit your timeshare completely, and remove all obligations and fees that come with it. Reputable exit companies can evaluate your ownership situation and provide you with a thorough analysis of your exit options. As long as you both sign on to the exit process, both parties will be completely free from any future liabilities of the timeshare.
Need to know more information about Divorce and Timeshare exits?
If you are divorced, or going through a divorce and currently have a timeshare, you can learn more about your options by clicking the button below: