Over the course of a marriage, a couple generally accumulates a variety of assets and debts that are considered jointly owned. Often, spouses will purchase a vacation property to have a place for their family to relax and enjoy leisure time away from home. While a vacation home and other assets can be valuable and beneficial in a relationship, if the marriage ends in divorce these properties must be divided between the couple. In order to protect your rights during this process it is important to obtain skilled representation. Reach out to a Memphis, Tennesse property division lawyer for more information and skilled legal advice.
Is a Vacation Home Considered Marital Property?
Most assets acquired during a marriage are considered jointly owned by both spouses. There are certain instances where a vacation home may be separate property, like if one spouse owned it before the marriage or inherited it from family.
However, if the house was bought during the marriage, especially using marital funds, it will be considered marital property and therefore subject to asset division. Even if one spouse purchased it on their own or it was inherited, the property may still be considered jointly owned during the divorce under certain circumstances.
If the other spouse contributed to the home in any way they will likely have a claim over the property. This could be done by contributing money or labor to improvements, cleaning, maintenance, etc. In most cases, yes, vacation homes are marital property for the purpose of a divorce.
How Will My Vacation Home Be Divided in My Divorce?
If you are getting divorced in Tennessee, your vacation home will be divided the way that all other assets and debts are split up: through equitable distribution. Equitable distribution is the process of dividing joint assets and liabilities between spouses in a way that is fair and equitable. Courts will consider a variety of factors before determining which spouse should be entitled to or responsible for which line items. These factors include income, earning capacity, physical and mental health, contributions made to the marriage, the length of the relationship, and more.
The actual way that the home will be divided varies depending on what the couple or court chooses to do. The simplest way to resolve the issue is by selling the home and splitting the proceeds of the sale. However, one spouse could also buy out the other by paying them the market value of their share of the home if they wish to maintain ownership.
If one spouse wishes to keep the home they could also essentially trade other assets for it. During equitable distribution, they may offer the other spouse additional properties equal to the value of the home in exchange for the right to keep the property.
The distribution of assets is a very individualized process and the couple should do whatever works best for them. For more information regarding your legal rights and options, reach out to an experienced attorney today.
