Some couples worked hard and were able to invest in a vacation home where they enjoyed building memories as a family. That home can become a source of contention if the couple decides to divorce.
Deciding what to do with a second home is often difficult. You and your ex will have to agree on what to do. There are a few options that you can think about:
Split the vacation home and the family home up
If the vacation home and marital home are similar in value, each party may opt to keep one home. Because vacation homes are usually a considerable distance from the marital home, think about how this will impact parenting time if you share children.
Sell the vacation home and divide the proceeds
Selling the vacation home could mean that there’s money available to pay off some of the marital debt. This is beneficial because it could leave you and your ex with a clean slate for your finances. Remember, the sale price will have to pay off the home loan for the property.
Use the vacation home as a rental and share ownership
It might be possible to own the second home together with your ex. You may be able to rent it out to have an income. Make sure that you have a good contract in place that outlines how the rental profit is split and how expenses are handled. If the home will be a short-term rental that enables you and your ex to each spend time in it, that should also be discussed.
The property division settlement is something to consider carefully. You need to do what’s in your best interests so don’t try to rush through these decisions. Having someone who can help you to evaluate the options logically is a good idea.