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What happens to your vacation home after your divorce?

Whether you have a beach house on South Padre Island, a cabin in the Hill Country or a quaint place somewhere else, you probably love your vacation home. If you are going through a divorce, though, you must divide your marital property with your soon-to-be ex-spouse. What happens to the vacation home? 

As you may know, Texas is a community property state. As such, the assets you acquire during your marriage are likely community property. When you divorce, a judge determines a fair and equitable way to divide everything you own. When it comes to your vacation property, where it ends up may depend on a few factors. 

Can you reach an agreement? 

If either you or your spouse wants to keep your vacation home, you may be able to reach an agreement about its ownership. That is, you may decide to give up other assets in an effort to keep the property. Alternatively, you may have a prenuptial or postnuptial agreement that outlines who owns the house after a divorce. Either way, if you negotiate effectively, you may be able to keep your vacation house. 

Should you sell the property? 

Cash is often easier to split than tangible assets. Even if you would prefer to keep the vacation home, you may choose to sell it to ease your divorce stress. Unfortunately, though, valuing vacation properties can be challenging. If you plan to go this route, you should obtain a few appraisals to determine how much your vacation home is worth. 

Is it possible to split occupancy? 

Another option to deal with your vacation home during your divorce is to come up with an occupancy schedule. That is, you and your spouse may decide to visit the property at different times throughout the year. Said a different way, continuing to jointly own the vacation home may be possible. If you are considering joint ownership, be sure you think through expenses, maintenance obligations and other matters. 

You may love your vacation home. While its future may be up in the air during your divorce, you likely have some options for dealing with its ownership.

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