What is a Timeshare?
The timeshare
industry is a multibillion-dollar industry that allows consumers to purchase
fractional real estate interest in vacation properties, such as resorts. There are
different varieties of timeshares. Timeshares may be more affordable than the
traditional approach to purchasing real properties. Timeshares may cost over
$20,000 to purchase, and some consumers take out a loan to purchase timeshares.
There may be mandatory, recurring maintenance fees associated with the ownership
of timeshares, which could be thousands of dollars per year. A timeshare is
governed by the laws of the jurisdiction where the timeshare is located.
How to Divide Timeshares in a Divorce in Georgia
Timeshares, if purchased during the marriage, may be considered marital property (or liability) subject to an equitable division or apportionment in a divorce in Georgia.
Just as with any
other property, there are many options regarding the division of timeshares in
a divorce in Georgia, which include the following: (1) sale of the timeshare
and division of the net proceeds; (2) buy-out of the other spouse's interest in
the timeshare; and (3) sharing of the timeshare.
Selling the Timeshare
Just as spouses
could sell their marital home and split the net proceeds, timeshares could be
divided in a similar fashion. However, the sale of timeshares is generally not
as profitable as the sale of the marital residence. In fact, oftentimes, the
resale value of a timeshare may be less than the original purchase price. Also,
if the spouses took out a loan to purchase the timeshare, then the loan could
make the sale of the timeshare difficult. Per the Federal Trade Commission's
Consumer Advice regarding Timeshares, Vacation Clubs, and Related Scams, "the
value of a timeshare is in its use as a vacation destination, not as an
investment." Further, there may be tax implications associated with sale of
timeshares.
Buying Out the Other Spouse's Interest
Another way to
divide timeshares is for one spouse to buy-out the other spouse's interest in
the timeshare. After determination of the value of the timeshare, one spouse
would pay the other spouse an amount equal to the other spouse's interest in
the timeshare. This option may be complicated by the difficulty in figuring out
the value of the timeshare.
If the spouses
choose this route, then they may need to hire an attorney in the jurisdiction
where the vacation property is located (which is oftentimes outside the state
where the parties reside) to draft and file a quitclaim deed or other legal
document transferring the interest to the recipient spouse.
Sharing the Timeshare
Another way to
divide timeshares may be to enter into an agreement to share the timeshare
after the divorce. This may only work if the spouses remain on good terms after
the divorce. Otherwise, this option may cause many issues down the road.
Consult with an Atlanta Divorce Lawyer or Georgia Divorce Lawyer
Because the
division of timeshares in a divorce in Georgia may be complicated, you may want
to chat with an Atlanta Divorce Lawyer or Georgia Divorce Lawyer if the division
of timeshares is an issue in your divorce case.
Written by: Daesik Shin