Asset division is a very contentious area of divorce, especially for high-asset couples. When spouses are trying to navigate through the property division stage of their divorce, having a proper plan in place can make a considerable difference in how prepared they are for negotiations or litigation.
A vacation home is a common point of argument in these situations, but having an idea of what you are looking to accomplish with your vacation home can help you achieve that goal. Here are three common results that you can plan for in your negotiations:
If you want to keep the home and become the sole owner of it, you can try to purchase your spouse’s half of the property. You can attempt to make this purchase in the form of a cash offer, trading for other assets (such as the primary residence), or making some other type of arrangement.
If you do not wish to keep the vacation home, you can pursue selling your portion to your spouse during the divorce. Your share of the vacation home can be a good bargaining tool for other assets that are on the table for negotiation.
Sometimes, spouses who both want to keep the home are able to come up with a co-ownership agreement. Like a timeshare agreement, the spouses can develop a schedule of when each of them has access to the home to avoid interfering with each other’s time there.
Preparation before starting
Before you begin negotiation over the vacation home, make sure you know what you are negotiating over. Get an appraisal of the property to ensure you know the home’s current value. By getting an appraisal, you can be sure that you are protecting your best interests during negotiations.