If you and your spouse own a vacation property, then it can become a focal point of your divorce. There may be sentimental value attached to it, and it could be worth a lot of money. As a result, each spouse might fight hard to retain the vacation home, but is doing so really in your best interest?
The risks of securing the vacation home in your divorce
Fighting for the marital vacation home may or may not be right for you. Before making a decision on it, though, you should consider the following facts:
- You might have to give up other valuable marital assets to retain the property.
- The property may be expensive to maintain and repair on your own.
- If the vacation property won’t become your second home and you intend to use it as an income property then you’ll have to pay additional taxes on it.
- Whether you’ll have the funds, availability, and motivation to actually use the property.
That’s a lot to consider. If you end up deciding that advocating for the vacation home isn’t right for you, then you might want to act on one of these options:
- Continue joint ownership with your spouse so that you can still use the property and generate some income from it without having to upkeep it on your own.
- Sell the property so that you can secure your fair share of the proceeds.
- Negotiate away your interest in the home so that you can secure other marital assets that are more important to you.
Don’t make a costly mistake in your high-net worth divorce
Your divorce is a major monetary transaction. Don’t leave yourself at a financial disadvantage by failing to craft a sound divorce legal strategy. Instead, figure out the position you need to take on property division issues well before entering your divorce so that you’re prepared to advocate for the outcome that you want.