How are timeshares handled in terms of property law? This often comes up in discussions about estate planning and inheritance. But it’s also a key factor when a marriage ends. Timeshare and divorce issues can create hefty legal and monetary problems for couples who split up, and the effects of those issues can last for years.
This article will take a look at the relationship between timeshares and the divorce process, answering a few of the most common questions on the topic. Specifically, we’ll look at how timeshares are split up in divorce proceedings, whether either spouse can be forced to keep a timeshare they don’t want from the marriage, and what some legal solutions to these problems might be.
As the top timeshare exit company, Centerstone Group has helped thousands of clients, including people going through the rigors of divorce, resolve their timeshare issues and get back their financial stability and good credit. The first step, though, is understanding the issues at play. Read on for a more detailed discussion of timeshares and divorce.
How Is a Timeshare Divided During a Divorce?
The equitable distribution of marital assets and debt after divorce is a tough problem. How things are divided is a long and complex answer. In any given case, who gets a timeshare will depend on two factors: one, the law in the states where you signed your timeshare purchase agreement and where you live and, two, what that contract says about ownership of the timeshare property.
Let’s look at these two factors more closely to see how they affect the property division in a divorce.
1. How State Law Affects Ownership ofMarital Property
Before a timeshare property can be divided upon a divorce, one needs to be sure who owns it. Contract and property laws differ from state to state, so the answer is slightly different for every marriage and divorce.
Some states, like California, are known as community property states. This means that, unless you expressly state otherwise, ownership of all property you get during the marriage is split between you and your spouse. Note, even if the legal name on the contract is yours alone, if the contract does not specify that it is your separate property, then it is still community property.
Other states, like Tennessee, are separate property states. Here, a contract that is only in your name belongs to you alone, and when you divorce, a family court will do its best to make sure that property goes to the spouse who should have it (or split the property, as necessary).
In both cases, a timeshare would have to be split between divorcing spouses. But in a community property state, each spouse would already legally own half, even if their name was not on the contract. In a separate property state, the same timeshare wouldn’t be divided until the family court enters a divorce decree and property settlement. Until that time, legal ownership of the timeshare would rest with the person whose name was on the contract.
2. How YourTimeshare Contract Can Affect Ownership
With that distinction in mind, though, one must also consider what the timeshare contract itself says. Many companies will insist that both spouses sign a contract in a community property state unless there is a specific clause stating that the timeshare is separate property. And, even in a separate property state, both spouses can still sign a contract and hold a timeshare as joint property.
Can One Spouse Be Forced to Keep a Timeshare?
It’s possible that one spouse will be forced to keep the timeshare. Above all else, family courts strive for equitable division of property and debts so that nothing is too unfair. However, what is fair after the divorce will depend on who owned the timeshare property before it.
Thus, it is vital above all else to know before the divorce who owns the timeshare now. If the ex-spouse who wants it is the current legal owner, that solves a great deal of problems because there doesn’t need to be any transfer of ownership or “buy out” (though a used timeshare holds next to no monetary value).
It’s more likely that the legal owner does not want to keep the timeshare, as the value of the timeshare is typically negative. In this case, the family court will have to rule in its divorce decree who should own the timeshare.
A timeshare is more likely to be seen as a debt than a property, given the numerous annual maintenance fees and assessments that come with ownership. If one person wants the timeshare, there’s no issue. However, if both spouses want it or don’t want it, the court will try to split the ownership — and the costs — between both spouses.
If the court can’t achieve this or it would result in an unbalanced distribution, then it is possible for one ex-spouse to be stuck with the timeshare. After paying a divorce lawyer and court fees, this can seem like adding insult to injury.
What Legal Options Are Available to Exit Pre- or Post-Divorce?
If the idea of leaving timeshare ownership (and the costs of it) up to the determination of a judge makes you queasy, you’re not alone. Over the course of decades, timeshare owners spend tens of thousands of dollars in maintenance fees alone. If neither of you are willing to shoulder that financial burden, a timeshare exit is the best solution.
Ideally, an exit should happen before your case ever gets to court. Litigating in a divorce case eats up money quickly, and making a responsible financial decision about your timeshare can make your life easier later. Unfortunately, that option won’t be available to everyone. The good news is, if you are stuck with a timeshare post-divorce, Centerstone Group can help you with that problem as well.
Our thousands of clients have relied on a variety of our tools to get the results they want. Though real estate sales of timeshares are rare, difficult, and unable to yield any real profit, you can give a timeshare to someone else through a transfer. We have a thriving transfer program that helps owners hand over their timeshares to new owners willing to take on the expense.
For owners who have been trying and failing to negotiate deed-backs or other arrangements with developers, we also have a proprietary pressure campaign that turns timeshare companies’ own high-pressure tactics back on them, with great success.
And, in the event there is a serious legal problem of fraud that needs the attention of a timeshare attorney or law firm, we can refer you to our legal partners, who will give you significant discounts on their fees, so you will end up paying less for their legal advice than you would pay a less-specialized family law attorney to do the same work.
Get the Help You Need Regarding Timeshares and Divorce
The specifics of timeshares and divorce cases will change with each marriage and property settlement, but the underlying effect of timeshares is that they virtually never add anything of value to a marital property estate. That’s why having a team of experts, like the one at Centerstone Group, at your side is so important.
We are an accredited, A+-rated company with the Better Business Bureau, and our clients have given us an outstanding 4.78–out-of-5-star rating for our services. If you’re struggling with or preparing for a divorce, let us help you with your timeshare issues. You can contact us for a free consultation anytime, and we will explain how we can help.
How are timeshares handled in terms of property law? This often comes up in discussions about estate planning and inheritance. But it’s also a key factor when a marriage ends. Timeshare and divorce issues can create hefty legal and monetary problems for couples who split up, and the effects of those issues can last for years.
This article will take a look at the relationship between timeshares and the divorce process, answering a few of the most common questions on the topic. Specifically, we’ll look at how timeshares are split up in divorce proceedings, whether either spouse can be forced to keep a timeshare they don’t want from the marriage, and what some legal solutions to these problems might be.
As the top timeshare exit company, Centerstone Group has helped thousands of clients, including people going through the rigors of divorce, resolve their timeshare issues and get back their financial stability and good credit. The first step, though, is understanding the issues at play. Read on for a more detailed discussion of timeshares and divorce.
How Is a Timeshare Divided During a Divorce?
The equitable distribution of marital assets and debt after divorce is a tough problem. How things are divided is a long and complex answer. In any given case, who gets a timeshare will depend on two factors: one, the law in the states where you signed your timeshare purchase agreement and where you live and, two, what that contract says about ownership of the timeshare property.
Let’s look at these two factors more closely to see how they affect the property division in a divorce.
1. How State Law Affects Ownership ofMarital Property
Before a timeshare property can be divided upon a divorce, one needs to be sure who owns it. Contract and property laws differ from state to state, so the answer is slightly different for every marriage and divorce.
Some states, like California, are known as community property states. This means that, unless you expressly state otherwise, ownership of all property you get during the marriage is split between you and your spouse. Note, even if the legal name on the contract is yours alone, if the contract does not specify that it is your separate property, then it is still community property.
Other states, like Tennessee, are separate property states. Here, a contract that is only in your name belongs to you alone, and when you divorce, a family court will do its best to make sure that property goes to the spouse who should have it (or split the property, as necessary).
In both cases, a timeshare would have to be split between divorcing spouses. But in a community property state, each spouse would already legally own half, even if their name was not on the contract. In a separate property state, the same timeshare wouldn’t be divided until the family court enters a divorce decree and property settlement. Until that time, legal ownership of the timeshare would rest with the person whose name was on the contract.
2. How YourTimeshare Contract Can Affect Ownership
With that distinction in mind, though, one must also consider what the timeshare contract itself says. Many companies will insist that both spouses sign a contract in a community property state unless there is a specific clause stating that the timeshare is separate property. And, even in a separate property state, both spouses can still sign a contract and hold a timeshare as joint property.
Can One Spouse Be Forced to Keep a Timeshare?
It’s possible that one spouse will be forced to keep the timeshare. Above all else, family courts strive for equitable division of property and debts so that nothing is too unfair. However, what is fair after the divorce will depend on who owned the timeshare property before it.
Thus, it is vital above all else to know before the divorce who owns the timeshare now. If the ex-spouse who wants it is the current legal owner, that solves a great deal of problems because there doesn’t need to be any transfer of ownership or “buy out” (though a used timeshare holds next to no monetary value).
It’s more likely that the legal owner does not want to keep the timeshare, as the value of the timeshare is typically negative. In this case, the family court will have to rule in its divorce decree who should own the timeshare.
A timeshare is more likely to be seen as a debt than a property, given the numerous annual maintenance fees and assessments that come with ownership. If one person wants the timeshare, there’s no issue. However, if both spouses want it or don’t want it, the court will try to split the ownership — and the costs — between both spouses.
If the court can’t achieve this or it would result in an unbalanced distribution, then it is possible for one ex-spouse to be stuck with the timeshare. After paying a divorce lawyer and court fees, this can seem like adding insult to injury.
What Legal Options Are Available to Exit Pre- or Post-Divorce?
If the idea of leaving timeshare ownership (and the costs of it) up to the determination of a judge makes you queasy, you’re not alone. Over the course of decades, timeshare owners spend tens of thousands of dollars in maintenance fees alone. If neither of you are willing to shoulder that financial burden, a timeshare exit is the best solution.
Ideally, an exit should happen before your case ever gets to court. Litigating in a divorce case eats up money quickly, and making a responsible financial decision about your timeshare can make your life easier later. Unfortunately, that option won’t be available to everyone. The good news is, if you are stuck with a timeshare post-divorce, Centerstone Group can help you with that problem as well.
Our thousands of clients have relied on a variety of our tools to get the results they want. Though real estate sales of timeshares are rare, difficult, and unable to yield any real profit, you can give a timeshare to someone else through a transfer. We have a thriving transfer program that helps owners hand over their timeshares to new owners willing to take on the expense.
For owners who have been trying and failing to negotiate deed-backs or other arrangements with developers, we also have a proprietary pressure campaign that turns timeshare companies’ own high-pressure tactics back on them, with great success.
And, in the event there is a serious legal problem of fraud that needs the attention of a timeshare attorney or law firm, we can refer you to our legal partners, who will give you significant discounts on their fees, so you will end up paying less for their legal advice than you would pay a less-specialized family law attorney to do the same work.
Get the Help You Need Regarding Timeshares and Divorce
The specifics of timeshares and divorce cases will change with each marriage and property settlement, but the underlying effect of timeshares is that they virtually never add anything of value to a marital property estate. That’s why having a team of experts, like the one at Centerstone Group, at your side is so important.
We are an accredited, A+-rated company with the Better Business Bureau, and our clients have given us an outstanding 4.78–out-of-5-star rating for our services. If you’re struggling with or preparing for a divorce, let us help you with your timeshare issues. You can contact us for a free consultation anytime, and we will explain how we can help.