As we know when married couples divorce all assets and liabilities are normally split. Houses, bank accounts, and cars are the most common assets, however, there can be other assets out there that will need addressing as well, and one that seems to pop up regularly is a timeshare contract.
Such an asset can be difficult to value, as timeshare contracts are a unique kind of asset and almost impossible to resell, often neither spouse wants to keep it, therefore what are the options?
Sell, keep or share!!!
While it is a unique asset when it comes to dividing a timeshare the possibilities are the same as they are with any other asset. One spouse buys the other spouse out, sells it completely or they continue to share it.
Most holiday makers purchase whilst already on holiday with the ‘we are having such an amazing time, why wouldn’t we want to commit to this every year’ attitude. Separations are different in every situation; however, it appears that more often than not neither spouse wants to take control of the responsibility of the timeshare.
Share
There are some instances in which divorced owners do continue to ‘share the share’. Obviously, this means that legal agreements need to be written, agreed, signed and given to the resort.
Keep
Another possibility is that one spouse would like sole ownership of the timeshare, this can be executed with a ‘buy out’. However, the million-dollar question is what is the actual value of the timeshare? The consumer would need to have the timeshare appraised and as with any separation, they will need to supply the spouse with another asset or a cash value that reflects half the value.
Sell
Or it could be that the purchase is now seen as a hindrance as opposed to a luxury with the chances that neither spouse is going to want to take 100% ownership of this asset upon divorce. We at TCA recommend that the consumer tries to sell it and put their timeshare experience behind them.
It is without a shadow of a doubt that money will be lost on this transaction. Think of it like buying a new car, as soon as the wheels hit the road the price drops in value, unfortunately, the same rules apply with most timeshares. The instant that contract is signed the value slumps.
There have been rare, and we repeat rare cases where a timeshare may appreciate in value, but more often than not you are dealing with a depreciating asset.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk