During divorce proceedings, dividing joint assets can be complex, especially when it comes to vacation homes of high value. If property division is a contested issue in your divorce, it’s in your best interest to contact our experienced Monmouth County Division of Assets Attorneys who can help fight for your rights. Please continue reading as we explore the various options that divorcing couples may encounter regarding their vacation homes.
How Are Vacation Homes Divided During a Divorce?
New Jersey is an equitable distribution state, meaning that marital assets are divided in a fair way, but not necessarily equally. The first step to determining an equitable distribution is identifying which assets are considered jointly owned. Property acquired during the marriage, such as the marital home, vacation homes, vehicles, bank accounts, retirement accounts, and businesses are typically considered marital property and thus subject to distribution. If the home was acquired before the marriage or inherited, it could be considered separate property which is excluded from equitable distribution. However, if the other spouse made contributions to the property, it will be considered a marital asset.
When dividing a vacation home, the court will examine various factors such as the home’s fair market value, equity, and debt. In addition, the court will consider each party’s age, health, contributions to the marriage, the length of the marriage, income, earning capacity, and hardships.
What Are the Options for Dividing a Vacation Home in a Divorce?
As long as the split is considered equitable for both parties, there are multiple ways to divide the vacation home. One of the most straightforward solutions is to sell the vacation home and divide the proceeds. This enables both parties to move on and have a clean break from the property. However, selling the vacation home may not be the preferred option if there are strong emotional ties to the property. In those cases, you may consider other options.
If one spouse wants to retain ownership of the home, they may decide to buy out the other spouse’s share. It’s important to thoroughly consider the financial implications, as this option involves paying the other spouse their portion of the home value. The amount paid will be based on an appraisal of the home’s value and equitable distribution determined by the judge. Therefore, a buyout may not be affordable or sustainable.
Depending on the status of your relationship, another option to consider is renting out the vacation home. This option requires cooperation and agreement between parties. If you can remain amicable, this option can provide a steady stream of income. Keep in mind the responsibilities and expenses associated with being a landlord, such as property management, maintenance, and potential vacancy periods. The logistics of this arrangement can lead to friction and resentment.
As you can see, there are various ways in which you can divide vacation homes during a divorce. At Paone Zaleski & Murphy, we are prepared to help you make informed decisions about the future of your shared property. Connect with our firm today to discuss your legal options with a seasoned attorney.
