Should You Keep or Sell Your Vacation Home During Divorce?

 Posted on November 26,2018 in High Asset Divorce

Owning a second home can complicate your high asset divorce. If you want to keep the vacation home for yourself, you will need to give up other valuable marital properties in return. Neither of you may want the property because you cannot foresee getting the same use and enjoyment out of it after you are divorced. Some divorcing couples choose to sell their vacation homes and divide the proceeds. You must weigh the positives and negatives when deciding whether to keep or sell a second home.

Keeping the Home

The financial and emotional value in owning a vacation home may be greater than what you could actually receive in a sale. By keeping the home, you have the option of sharing use of it with your former spouse or renting it to other vacationers. Your enjoyment from the home is also a valid reason to keep it. However, you should consider the practical cost of owning the home:

• Can you afford the continued upkeep of the home, including months when it is unoccupied?;
• Can you afford to pay property taxes on more than one home?
• Will you be making mortgage payments on two homes?;
• If sharing ownership, will you be able to work out a shared schedule with your former spouse?; and
• Will you use the home enough for it to be worth keeping?

Selling the Home

The money you receive from selling your vacation home can compensate both of you for your lost assets and income after your divorce. You will save money on property upkeep and taxes, as well as avoid the headache of figuring out who will keep the home and which other properties you should exchange for it. However, you should not rush to sell your home without considering the consequences:

• The profit you receive from selling a vacation home is not tax-protected like when you sell a primary home;
• You may not receive full value for the home, depending on the housing market;
• Waiting on selling the home may delay completion of your divorce or make you less certain about what you are receiving from the division of property; and
• Selling the home may upset your children, who are sentimental about the home and the family memories associated with it.

Contact a St. Charles Divorce Attorney

Keeping or selling a vacation home is an important decision to make during your divorce. A Kane County divorce attorney at Goostree Law Group can help you weigh the benefits of each option. To schedule a free consultation, call 630-584-4800.

Source:

http://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm