Memories of vacations at the condo create emotional ties to the property. The financial investment in one of these properties is also considerable. Whether it’s a condo near a ski resort, the beach or somewhere else, it can easily become one of the most challenging things to have to divide during the property division process.
There are several options that you have to consider when you’re trying to determine how to handle a vacation condo in a divorce. These may provide you with a better understanding of what options you have and how each may impact you.
Buy out, sell or co-own?
Once value is determined, there are a few common paths:
- Buy out: One party keeps the property and buys out the other party’s share of equity in the condo
- Co-ownership: Both parties continue to own the condo and split the profits if it’s rented, as well as the expenses related to it
- Sell: Selling the condo can simplify things because the profit can be used to pay off marital debts, split between you and your ex or both
Before settling on an option, you must consider the full financial impact of each. If you’re considering keeping or co-owning it, you must think about paying all the expenses, including condo association fees, loans, insurance, upkeep and taxes. In a co-own situation, a comprehensive contract is necessary.
If you opt to sell the condo, you and your ex will have to agree on the sale price. You’ll also have to agree on what to do with the proceeds.
Working with someone familiar with these matters may be beneficial. Ultimately, you have to do what’s best for your own interests.