If you and your spouse own any vacation homes, and you have concerns about how the property will be divided in the divorce, an experienced Nassau County Property Distribution Lawyer can help you navigate this complex process, discuss your legal options, and recommend the best course of action. Please continue reading to learn how vacation homes are handled during a New York divorce.
Are Vacation Homes Subject to Equitable Distribution?
Before you can determine how your vacation home will be divided during divorce proceedings, you must first figure out whether the asset is considered jointly owned or separate property. New York operates under the equitable distribution rule, meaning assets acquired during the marriage are divided fairly between spouses, but not necessarily equally. Depending on the specific circumstances, vacation homes may be categorized as marital property.
Generally, if one spouse purchased the homes before the marriage or inherited the property, it will be considered separate property, which is excluded from equitable distribution. Therefore, the vacation home would not be divided between spouses and remain with the individual who owns it. It’s important to note that if the other spouse has made contributions to the property, whether financial or otherwise, it can be considered marital property. If the property was acquired during the marriage or with marital funds, it’s considered marital property and thus subject to equitable distribution.
What Are the Options for Dividing a Vacation Home After Divorce?
As long as the split is considered fair for both parties, a vacation home can be divided in several ways. The most obvious option is to sell the property and split the proceeds. With this option, you can use the funds from the sale towards a new venture or invest in other assets. Selling the home will allow you to move forward with your life without any ties to the property. However, if one spouse holds strong emotional ties to the property, you may want to consider other options.
If one party feels strongly about retaining ownership of the vacation home, you can buy out your spouse’s share. This option requires careful consideration, as you may need to refinance or take out a home equity line to do this. It’s important to determine whether the buyout is affordable and sustainable. While this option will allow you to keep the property, it’s essential to ensure that it doesn’t jeopardize your financial security in the future.
Another option to consider is renting out the vacation home. This option will allow you to keep the property while earning a steady income, which can contribute to both party’s financial well-being. This may be the right option for you if your vacation home is in a desirable location with high rental demand. Before you decide to pursue this option, you should take into account the responsibilities associated with being a landlord, including maintaining and managing the property as well as anticipating periods of vacancy.
If you have reached an amicable divorce and can communicate effectively about financial matters, you may be able to retain joint ownership of the vacation property. If you are going through a divorce, and have concerns about what will happen to your vacation home during property distribution, please don’t hesitate to contact a determined lawyer from the Law Offices of Eyal Talassazan, P.C., at your earliest convenience.
