In addition to your family home, vacation homes and other investment properties will need to be divided equitably in the event of a divorce. This can be a complicated and contentious process. As such, you should enlist the help of an experienced Suffolk County Marital Property Attorney who can help you safeguard your financial interests throughout divorce proceedings. 

Are Vacation Homes Subject to Equitable Distribution?

New York is an equitable distribution state, meaning marital property is divided fairly between spouses, but not necessarily equally. If the vacation home was acquired during the marriage or with marital funds, it’s considered marital property and thus subject to equitable distribution. If the vacation home was purchased by one spouse or inherited before marriage, it could be considered separate. However, if the other spouse made any contributions to the property, it will be considered marital property.

What Are the Options for Dividing a Vacation Home After Divorce?

After you have an accurate home valuation, you will need to address what to do with the vacation home based on each party’s financial circumstances. There are multiple options for equitably dividing a vacation home during a divorce, including the following:

  • Sell the home: The simplest solution is to sell the vacation home and split the proceeds. This option will provide a clean break from the relationship and move forward without any ties to the property. However, if you have strong emotional ties to the home, other options may make more sense given the unique circumstances of your case.
  • Buy out your spouse’s share: If one spouse feels strongly about retaining the vacation home, you can choose to buy out the other spouse’s share. If you pursue this option, you must consider your financial resources. You need to determine whether you can afford to pay your spouse their portion of the home’s value in addition to the costs of maintaining the residence. In some cases, a refinance or home equity line is utilized to accomplish this option. Although buying out your spouse will allow you to keep the home, it’s crucial to ensure this decision doesn’t jeopardize your financial security.
  • Rent out the vacation home: Another option to consider is renting out the vacation home as it can provide a stream of income that can contribute to the financial well-being of both parties. This is a popular option for those with vacation homes located in a desirable area with high rental demand all year. However, this option requires cooperation, meaning you will need to agree on how to handle responsibilities as a landlord. This can lead to disagreements.
  • Retain joint ownership: For those facing an amicable divorce, another option is to maintain co-ownership of the property. This will allow both parties to continue to enjoy the property after the divorce. This option also requires cooperation. You should consider creating a formal agreement that outlines responsibilities regarding maintenance, expenses, and usage rights.

As you can see, there are various solutions to dividing a vacation home during a New York divorce. If you are going through a divorce, and you are concerned about what will happen to your vacation homes, it’s in your best interest to contact a seasoned attorney from the Law Offices of Susan A. Kassel, P.C., at your earliest convenience. We are prepared to help you navigate your legal options and determine the best course of action given the unique circumstances of your case.