When couples divorce in Colorado, family courts mandate that marital assets must be divided equitably. The marital portfolio was a joint venture, and so the law seeks to allow both of you to enjoy the fruits of your labor. But timeshares are kind of an oddity in divorce.
Timeshares are not a brick-and-mortar property asset, nor do they enjoy highly-defined and updated values like a stock. They’re part asset and part discretionary spending in many ways. Although resolving a timeshare issue may not be perfect, these are three ways divorcing couples can deal with it.
Bite the timeshare bullet
Selling the timeshare and distributing the funds may seem like the least desirable option on the table. That’s often because the usage is linked to good times, sandy beaches and bountiful ski resort fun, among others. Also, timeshares tend to depreciate the moment you buy them. It’s not uncommon for couples to get less than they anticipated from such a sale. It is likely you will take a loss. But the upside is that the rising annual expenses will end, and you will be free to pursue other vacation opportunities in the future.
Share and timeshare alike
One of the benefits of owning a timeshare is that it motivates people to take a relaxing vacation. Considering that you spent a large amount upfront, splitting any annual fees and usage going forward can be a viable option.
In more amicable divorces, sharing the timeshare tends to work smoothly. Usage can be split in half annually or full usage in alternating years. Usually, the costs are assigned to reflect each person’s enjoyment. But even in the friendliest of divorces, it’s essential to incorporate the deal into the final decree. After all, there’s a reason you are getting divorced in the first place.
Stop living on borrowed timeshare
When a divorce is not so amicable, or spouses just want a clean break from each other, one person buying the other’s portion and taking sole ownership can make sense. The difficulty with this option is that timeshare values can be a tad less robust than the idea owners have about them. But in America, it seems like we can assign a value to just about anything.
If one person wants to own it, you can reconcile the timeshare by agreeing to have it independently valued. There’s no reason to agree to disagree about a timeshare in divorce, just write a check or have it deducted from the settlement.