When you go through the complicated and emotional process of divorce, your frustration can increase dramatically if you need to decide on your timeshare ownership. People often prefer to address their timeshare ownership at the start of their divorce process. Otherwise, there is a chance that your process could be prolonged, making an already fraught process even tougher.
If you own a timeshare and are considering or going through a divorce, here are a few factors for you to consider.
Decide Who Will Claim the Timeshare In Divorce Proceedings
If you are in a situation where one of you wishes to keep sole ownership of the timeshare while the other wants to let it go, then you must adjust the names on the timeshare contract. You officially need to remove the name of the person relinquishing their portion. If you fail to do so, this may cause you to suffer from a financially responsibility for something you don’t own anymore.
However, if both parties would like to keep the timeshare, work out a contract in terms of payment responsibilities and rights of usage for the timeshare.
Document the Terms & Have Both Parties Sign a Contract Regarding the Timeshare when in Divorce Proceedings
If one of you is opting for the sole ownership of the timeshare, then they will be responsible for all the associated costs. But this cost will still be factored into the overall divisible liabilities and assets. This is more important if you are splitting the contract, as names of both parties are on the contract. For instance, if you plan to trade off the timeshare every other year, and one party (in its turn) misses their payment, both parties will be held liable.
So keep yourself protected and place the agreement in a formal contract. Make sure both parties sign the contract, and it is filed with the courts involved in the divorce agreement.
Timeshare Resale Challenges and Risks
What if neither of you want to hold on to the timeshare property after getting divorced? You may try to sell the timeshare, but this can be a lot more difficult than you might think. Since timeshares are widely available, there is little to no resale market for timeshares. In fact, the inventory of available timeshares for sale vs. the number of people actually buying timeshares has depressed the resale value of timeshares to almost unimaginable levels.
That is, when supply surpasses demand, it significantly reduces the value of anything and this is especially true right now for timeshare resales. If you go to Ebay or Craiglist and search for timeshares for sale, you will literally find hundreds of them listed for a $1 or even a penny.
If you’ve decided to sell your timeshare, choose only a well-respected timeshare resale company to handle it. The timeshare industry is full of scams and timeshare resale scams are in plentiful supply. In fact, Consumer Reports just released a warning to consumer to beware of timeshare listing companies. You can read the full report by Consumer Report’s on timeshare resale scams
Cancelling Your Timeshare Legally and Permanently is Still Your Best Bet
Whether going through a divorce or not, your best bet is to exit the timeshare completely. This will also remove the associated obligations such as timeshare maintenance fees, timeshare mortgage payments, etc. Calling a reputable timeshare exit company like Timeshare Freedom Group is the first step in removing this unnecessary burden from your life and make for one less thing to worry about in the divorce process.
One of Timeshare Freedom Group’s experienced timeshare advisers will be able to evaluate your exit options, while also taking into consideration the nuances of your divorce as it relates to getting out of the timeshare contract. The timeshare adviser will ensure that neither party in the divorce proceedings will remain liable for any fee or other future obligations of the timeshare.