In a past blog post, we discussed the question of whether it is possible for spouses to keep the vacation home when they divorce. We briefly addressed some of the options available to North Carolina spouses. Here, we will take a closer, in-depth look at these options.
3 ways to divide the vacation home
If you purchased the vacation home together with your spouse during the marriage, it is likely classified as a marital asset. Therefore, it will fall under the umbrella of property you must divide in divorce.
However, how exactly do you divide a vacation property? There are generally three paths forward:
- Sell the property: A common way that spouses divide such property in divorce is to sell it. Then, they divide the earnings from the sale.
- Keep it: It is possible for one spouse to keep the property. In most cases like this, spouses will have to negotiate with one or multiple assets of similar value to the vacation home to ensure that property division remains equitable.
- Share the time: There is also an option for spouses to keep the property but divide the time they spend there. For example, both spouses might agree to continue owning the vacation property together. This option will require negotiation for how to maintain the vacation home as well as how to divide the scheduling.
Of course, as we noted in the previous blog post, there are several other factors that you must evaluate when addressing this marital asset in property division. However, these are three strategies you can consider when handling your relaxing home away from home.
The option you move forward with will heavily depend on these factors – as well as whether you and your spouse can agree.
What if you cannot reach an agreement?
If divorcing spouses face serious disputes about how to handle their vacation home, the decision may lie with the court. As the North Carolina law on marital property indicates, family law courts will determine an equitable distribution of your assets, including real estate, if spouses cannot reach a property division settlement themselves.
Many people consider a vacation home not only as a real estate investment but a family investment. You may want to keep the vacation home in the family. So, you must consider your options very carefully when it comes to this asset.