Divorce is never easy. Yet, sometimes, ending a marriage is what’s best for everyone. Still, the process is rather complicated. Things get even hairier when the couple owns a timeshare. In this guide to timeshare law, a couple who purchases a shared vacation property together is still liable for the payments once their marriage ends. Luckily, there are things you can do to make the process more straightforward. This article answers the question, “What happens to a timeshare upon divorce?”
Divorcing couples can sell their timeshare once their marriage is over. However, there are some things to keep in mind:
- Resort companies make it impossible to exit the timeshare contract, so you may have to look for loopholes within the contract to sell.
- Never expect to make too much money from the sale since the seller’s market is geared more toward new timeshares instead of used ones.
- Timeshares have almost no value in the real estate market.
One Person Buys It
Another thing that happens to a timeshare upon divorce is that one person may buy it from the other. Again, timeshares have minimal real estate value, so buying one is never a wise investment. However, if one person wants to keep the timeshare, they need to buy out the other person. If one person refuses to pay out the other, courts may have to get involved.
Timeshares are a bad investment because they can affect your credit if you don’t make timely payments. Consequently, as hard as it may be, divorcing couples have to work together to figure out what they’re going to do with their shared vacation property. If the former partners allow their hostilities to get in the way, they could end up foreclosing on the property simply because they couldn’t communicate with one another. Don’t be the headline of one of these stories.