When couples get a divorce in a community property state such as California, all assets acquired during the length of the marriage (but prior to separation) are considered community property and must be equally divided. Separate property, which includes any asset acquired before the marriage, is not included under community property. California courts define this dividing process as “equitable distribution”, to ensure that both spouses get their fair share when it comes to splitting up personal property, real estate property, bank accounts, retirement accounts, pension plans, family businesses, and insurance policies. Each spouse is required to make a list of all possessions and debts and categorize them either as separate or community property. Most couples are able to come to an agreement on their own or by using attorneys and/or a mediator o they avoid having a judge make the division for them.
Timeshare Needs to be Sold or Award to 1 Spouse
Besides owning a family home, some couples also own a timeshare. As with all assets, a timeshare needs to be either sold, awarded to one spouse, or shared by both spouses. Each decision needs to follow a specific procedure:
Sell the Timeshare
Sometimes neither spouse wants to keep the timeshare indefinitely. In this case, it is best to sell it. While most timeshares depreciate over time, a few of them do appreciate in value. When that happens, spouses will need to decide how to share the proceeds equitably. There are many marketing options to sell a timeshare, including direct sales or through a broker. Couples can try to sell the timeshare themselves by listing it on a website such as BuyATimeshare.com. This internet-based company provides an online platform for couples to advertise their timeshare for sale and the ability to reach many potential buyers around the world. This may be difficult to do as an owner trying to sell the timeshare is often competing with the developer of the complex.
1 Spouse Takes Over the Timeshare
When couples agree to award one of the spouses the right to own or retain the timeshare, the other spouse needs to execute a release of deed from their name in the timeshare. Since this award is included in the marital settlement agreement (MSA) and filed with the court, it will eliminate any timeshare ownership issues in the future. The timeshare, like any other property asset, first needs to be assessed to find out its value. The party keeping the property will be solely responsible for the balance of any mortgages and annual maintenance fees.
Keep the Timeshare and Share It
Finally, some couples decide to keep the timeshare and share it. This solution works better for couples who function on a very amicable level and communicate well with each other. Couples need to put down in writing as part of their settlement agreement exactly how the timeshare will be shared in the future, and what will happen if one of the spouses decides to sell eventually. The parties will equally divide and expenses for the property such as the remaining mortgage and annual maintenance fees.
Deciding what to do with a timeshare during a divorce can be a complex decision because of all the elements involved and the potential for disagreement. An experienced divorce mediator will help spouses work together to divide community property and debt fairly and equitably, and solve any disagreements. The same divorce mediator can also help couples with other issues of their divorce, such as child custody and spousal support, so it is important to know that help is available.
About A Fair Way Mediation
A Fair Way Mediation Center offers a relaxed, compassionate atmosphere in an informal setting that encourages a calm and objective approach. This is a safe space that avoids the stress and embarrassment that courtroom procedures can inject into any divorce or separation. All couples are welcome, including traditional or same sex families.
<< Back to Articles