When two individuals decide to get a divorce, everything they own together must be divided including marital homes, cars, artwork, vacation properties, and more. Vacation homes are often high-value properties that have sentimental value to both individuals in a marriage. Determining how to split the home can be overwhelming and complicated. To learn more about your rights and obligations during the asset division process, read on and speak with a skillful Sparta property distribution attorney today.
Are Vacation Properties Marital Assets?
Vacation properties can be considered marital or separate property depending on the details of the home and the couple’s situation. If one spouse owned the home before the marriage or inherited it from family it is possible that it will be considered separate property. However, this is rarely the case.
Even if the above is true or only one spouse’s name is on the deed of the property, it is possible that the home will be considered jointly owned. If the property was purchased, improved, renovated, etc. using marital funds, it will be considered owned by both spouses. Additionally, if the spouse whose name is not on the deed contributes to the home in any way it can be considered marital property. This includes putting money into it in any way like cleaning, gardening, decorating, or maintaining the property.
How Are Vacation Properties Divided During Divorce in NJ?
There are several ways that vacation properties can be divided between two individuals getting a divorce, as long as the division falls under equitable distribution. Equitable distribution ensures that martial assets and debts are divided fairly between the parties of a divorce, but not necessarily equally.
Given that a court approves and the split is considered equitable, couples can divide their vacation home in any of the following ways.
- Sell the home: The most obvious way that the property can be divided is by selling the home and splitting the profit between the pair. After the sale, a court can help determine what percentage of the proceeds each spouse is entitled to.
- Buy the other spouse out: One spouse may also choose to buy the other one out. Essentially, this means that instead of selling the home to someone else, one spouse will pay the other the amount that they would have received if the property was sold. The paying spouse would then assume ownership of the entire property.
- Equitable distribution: It is also possible for a court to assign the vacation home to one spouse during property division. One spouse may be allowed to maintain sole ownership of the home under the condition that the other spouse is awarded additional property to make up the difference in value.
Some couples may even decide to continue jointly owning the property. This can be beneficial if the pair shares children or does not want to make the decision just yet. This setup can be complicated and messy depending on the relationship between the couple, but it may work for some.
For more information reach out to an experienced divorce attorney today.
