3 options for your vacation home after your divorce

On Behalf of | Jan 22, 2021 | Divorce | 0 comments

When you and your spouse first visited the Smoky Mountains near Gatlinburg, you knew you would return many times. Buying a vacation home allowed you to achieve that dream. Now that your marriage is heading for an inevitable divorce, you may wonder about the future of your vacation property.

In Tennessee, divorcing spouses usually receive an equitable share of the marital estate. If you purchased your vacation home during your marriage, it is probably subject to distribution upon divorce. Here are three ways you may address ownership of your vacation home.

1. Sell the property

Divorcing spouses commonly sell real property and divide the proceeds from the sale. Unfortunately, though, selling a vacation home can be challenging. If you intend to go this route, you should consider working with an appraiser and realtor who understand vacation properties in Tennessee. You should also understand your potential tax obligations.

2. Buy out your spouse’s interest

If you want to keep the vacation home, you may be able to buy out your spouse’s interest in it. To do so, you may either give your soon-to-be ex-spouse cash or something of similar value. If he or she wants to keep the home, your current husband or wife may also have this option.

3. Share the property

Despite the imminent end of your marriage, you and your spouse may not be on bad terms. Continuing to share the vacation property may be possible. To do so, negotiate usage schedules, maintenance and upkeep costs and other matters and formalize them in a legally binding document.

Ultimately, your ability to share the vacation home after your divorce may boil down to whether you can put disagreements aside and focus on keeping the property.