If you and your spouse are going through a divorce, it’s crucial to understand that your marital property will be subject to equitable distribution. In addition to your primary residence, retirement accounts, and business interests, vacation homes, and other investment properties will need to be divided equally between spouses in a divorce settlement agreement. If property distribution is a contested matter in your divorce, it’s in your best interest to contact our determined Edison Property Division Lawyers who can help fight for your rights. Please continue reading as we delve into the various options that divorcing couples may consider regarding the division of their vacation homes.
Are Vacation Homes Subject to Equitable Distribution During a Divorce?
When determining how property will be split in a divorce, the first step is to figure out whether the property is considered marital or separate. It’s important to understand that New Jersey is an equitable distribution state, meaning marital property will be divided in a fair way, but not necessarily equally. Marital property typically includes any assets that were acquired during the marriage. For instance, if you and your spouse purchased a vacation home after you got married, it will likely be considered a martial asset and thus subject to equitable distribution.
Separate property, on the other hand, is the property you or your spouse owned before the marriage. If the vacation home was acquired before the marriage or the property was inherited, it would be excluded from equitable distribution. However, if marital funds were used to maintain the property or the other spouse contributed to the property, it may be subject to partial division in the divorce.
What Are the Options for Dividing a Vacation Home After Divorce?
As long as the division is considered equitable for both parties, a vacation home can be split in several ways. One common approach is to sell the home and split the proceeds. The funds from the sale can be used to start anew. If there are strong emotional ties to the property, you may want to consider other options.
Depending on your financial situation, another option you should consider is buying out the other spouse’s share. While buying out your spouse’s share may be a viable option for retaining your vacation home, it’s crucial to carefully consider the financial implications. You should seek professional advice to ensure you make a sound decision based on your financial circumstances. It’s important to consider whether you can afford to pay your ex-spouse their portion of the vacation home’s value in addition to the costs associated with maintaining the residence.
Another option to consider is renting out the vacation homes as it will allow you to keep the property and earn an income, which can contribute to both party’s financial well-being. This option is particularly advantageous if the vacation home is in a desirable location with a high rental demand all year. However, you’ll need to consider the responsibilities of a landlord, including maintaining the property and potential periods of vacancy. In addition, this option requires cooperation between you and your ex-spouse. Continuing financial ties to your ex-spouse can lead to disagreements and resentment.
If you are going through a divorce, and have questions about how the property will be divided, it’s in your best interest to contact a skilled attorney from Arndt, Sutak & Miceli, LLC at your earliest convenience. Our legal team is prepared to help you make informed decisions and safeguard your financial interests.
