Texas couples who have gone through a divorce know how it can impact every part of your life, including any major assets or properties. Unfortunately for many, this means that the vacation home can be up for grabs in a divorce as well.
How does a vacation home differ from a primary residence?
Primary residences in divorces are more often than not purchased with both names on the loan or property. Primary homes are also where a lot of couples with children get emotional.
Because of this, primary residences are either used as a bargaining chip in negotiations or simply refinanced. Whoever gets primary custody of the kids might also get the house and whenever the house is sold, then the profits of the sale are split between both spouses.
Vacation homes are treated a little differently. While a lot of emotion can be tied into a vacation home, it’s ultimately considered a secondary property and strictly in financial terms as far as the divorce goes.
Most of the time, the lawyers might recommend that you sell the vacation house and split the profits. Other times, the vacation home might have a different financial aspect attached to it which makes coming to a conclusion complicated.
What things are taken into consideration when deciding who gets the vacation home?
If there’s a mortgage on the property that is in both spouses’ names, then it’s considered joint property and the home will need to be refinanced if one person wants to keep it. If one person wants to keep it while the other wants to sell, that can be a complicated issue.
To settle issues regarding the vacation home, the court might look at who put more money down for the house. If a person used their inheritance money, gift money, or salary money to purchase the vacation home, that’s taken into consideration.
The value of the vacation home is also taken into consideration. If the financial value has gone up or down, that might be used in conjunction with other life factors to decide who gets the vacation home.