If you are preparing to divorce your spouse, you probably know something about division of marital assets. In California, you and your soon-to-be ex-spouse have an equal ownership interest in the marital estate. The same is true for your marital debts.

In addition to your house, cars, retirement plans and savings, the timeshare you own may be a marital asset. Consequently, in the lead-up to your divorce, you should develop a plan for dealing with the property.

Difficulty with timeshare valuation

If you want to estimate the value of your home, you can look at comparable sales in your neighborhood. Valuing a timeshare, unfortunately, is not always so straightforward. While the worth of your unit depends on many factors, timeshares are often difficult to offload. This fact makes these vacation rentals extremely hard to appraise.

Challenges with selling the timeshare

Your timeshare’s owner’s agreement likely places a few restrictions on selling your ownership interest. If you and your spouse want to part with the property, you must comply with these terms. Even then, finding a buyer for a secondhand timeshare may be challenging. Accordingly, you may have to take a financial loss with the sale of your timeshare.

Considerations with keeping the timeshare

If your spouse wants to secure exclusive ownership of the timeshare, he or she may be able to buy out your ownership interest. Alternatively, you may be able to continue to jointly own the property after negotiating a shared usage schedule.

Whether you want to keep the timeshare or rid yourself of it, you must recognize the inherent challenges timeshares present in divorce matters. If you can come up with a realistic valuation, though, you may be able to reach an acceptable agreement.

If you are preparing to divorce your spouse, you probably know something about division of marital assets. In California, you and your soon-to-be ex-spouse have an equal ownership interest in the marital estate. The same is true for your marital debts.

In addition to your house, cars, retirement plans and savings, the timeshare you own may be a marital asset. Consequently, in the lead-up to your divorce, you should develop a plan for dealing with the property.

Difficulty with timeshare valuation

If you want to estimate the value of your home, you can look at comparable sales in your neighborhood. Valuing a timeshare, unfortunately, is not always so straightforward. While the worth of your unit depends on many factors, timeshares are often difficult to offload. This fact makes these vacation rentals extremely hard to appraise.

Challenges with selling the timeshare

Your timeshare’s owner’s agreement likely places a few restrictions on selling your ownership interest. If you and your spouse want to part with the property, you must comply with these terms. Even then, finding a buyer for a secondhand timeshare may be challenging. Accordingly, you may have to take a financial loss with the sale of your timeshare.

Considerations with keeping the timeshare

If your spouse wants to secure exclusive ownership of the timeshare, he or she may be able to buy out your ownership interest. Alternatively, you may be able to continue to jointly own the property after negotiating a shared usage schedule.

Whether you want to keep the timeshare or rid yourself of it, you must recognize the inherent challenges timeshares present in divorce matters. If you can come up with a realistic valuation, though, you may be able to reach an acceptable agreement.