Vacation Homes in Divorce

Vacation Homes in a Minnesota Divorce

Divorce can be a complicated and emotionally-charged process, particularly when it comes to dividing assets like vacation homes. After all, a vacation home is a valuable asset that you and your spouse may have worked hard to acquire. If you’re going through a divorce, you may be wondering how your vacation property will be handled. Here’s what you need to know.

The good news is that there are a number of options available to you when it comes to dividing your vacation home in a divorce. The best option for you will depend on your individual circumstances and needs.

How Vacation Homes Are Divided in a Divorce

In Minnesota, vacation homes that are purchased with marital funds are considered marital property and are subject to equitable distribution. This means that the property will be divided fairly between you and your spouse.

Your Options for Dividing Your Vacation Home

There are a number of different ways to divide your vacation home in a divorce. Some of the most common options include:

• Selling the property and dividing the proceeds. This is the most straightforward option, but it may not be ideal if you are both emotionally attached to the property.
• One spouse buying out the other spouse’s interest in the property. This can be a good option if one spouse is more financially able to afford the property than the other.
• Continuing to own the property together and sharing use of it. This can be a good option if you are both able to get along and cooperate. However, it is important to have a written agreement that sets out the terms of your shared ownership, such as how often each spouse will be able to use the property and how the costs of maintenance and upkeep will be paid.

Getting Help with Dividing Your Vacation Home

The best place to start if you have questions is by contacting an attorney. There are a lot of legal complexities in dividing property. An experienced lawyer can represent you in the negotiation process in order to achieve the best possible results and help you understand all of your options during this trying time.

Here are some additional basic tips for dividing your vacation home in a divorce:

• Get an appraisal of the property. This will help you determine its fair market value.
• Be realistic about your needs and wants. It is important to be realistic about what you can afford and what you want out of the divorce.
• Be prepared to compromise. In most cases, both spouses will have to give up something in order to reach an agreement.        
• Research options for refinancing any encumbrances on the vacation home, if needed.
• Consider the costs associated with continued ownership and how often you will be able to use the property.

When it comes to dividing vacation homes in divorce, there are a number of factors that can come into play that can impact the process. Some of the most important factors include:

• Whether the vacation home was purchased before or after the marriage
• How the vacation home was financed
• Whether the vacation home was used as a rental property or solely for personal use
• How much equity is in the vacation home
• Whether either spouse has an emotional attachment to the vacation home

When determining the property’s worth, there are various factors to consider. Examining these can help you set more achievable financial goals, but you should also take taxes and sentimental factors into account.

• The age of the property. A newer property will be worth more than an older property, which could affect how it is divided.
• The condition of the property. A property that needs repairs will be worth less than a property that is in good condition.
• The location of the property. A property in a desirable location will be worth more than a property in a less desirable location.
• The tax implications of selling the property. If you sell the property, you may have to pay capital gains taxes.
• Property taxes. If both partners were employed or one partner, the one also wanting the home, is not, the reduced income should be considered before pursuing or keeping the property.
• The emotional attachment to the property. If you are both emotionally attached to the property, it may be difficult to agree on how to divide it.

It is important to weigh all of these factors carefully when your are deciding how to approach the division of your vacation home in a divorce. By doing so, you can increase your chances of reaching an agreement that is fair to both you and your spouse.

If you’re going through a divorce and need help with vacation home division, a family law attorney can help. Some of the ways they can assist you include:

• Providing legal guidance and advice on your options for dividing the vacation home
• Helping you negotiate with your spouse and their attorney to reach a fair agreement
• Representing you in court if the case goes to trial
• Helping you understand the tax implications of different division options
• Drafting and filing the necessary legal paperwork to finalize the vacation home division

If you are unable to reach an agreement on how to divide your vacation home, you may need to go to court. A judge will then decide how the property should be divided. However, it is important to remember that going to court can be expensive and time-consuming.

Contact an Experienced Minnesota Divorce Lawyer

If you are facing a divorce and you own a vacation home, it is important to understand your legal options in order to get the best possible outcome. Contact one of the Minnesota divorce attorneys at Heimerl & Lammers at (612) 294-2200. We offer free consultations to get to know you and your story. We are very experienced with high-asset divorces and will put that experience to work for you to ensure the best possible outcome.

Contact Experienced Minnesota Divorce Attorneys

If you are considering a divorce and own a vacation home, please contact Heimerl & Lammers to help you throughout the process and ensure your rights are protected. Whether you are looking to divide the property or hoping to keep it, we can help. We have offices throughout the Twin Cities area.