It is quite common for families to own a second home or vacation home, either in another part of Georgia or in a different state altogether. As a result, when the couple decides to divorce, they also must decide how to equitably divide the vacation home in their divorce.
One simple solution is to sell the vacation home and divide the profits between the parties. However, depending on the real estate market, the location of the home, and the costs of maintaining the property, it may not be possible to sell the home without taking a significant loss. In this case, it is usually more lucrative for one of the spouses to keep the vacation home and have the value of the home credited to his or her share of the marital assets. If neither party wishes to keep the home, however, then the parties should probably sell it and attempt to minimize their losses, simply for the sake of getting out from under the home and finalizing their divorce.
If there is a joint mortgage on the vacation home, the spouse who wishes to keep the home normally must refinance the mortgage loan so as to remove the other spouse’s name from the loan and the property. From a financial perspective, that spouse must have sufficient income and assets with which to maintain and pay for the home, including any balance of the mortgage loan, insurance, and taxes. If there is rental income from the property, however, the spouse who retains the home would be entitled to that income.
If you considering filing for divorce and have questions about property division, the Shaw Law Firm, LLC, can help you. We will evaluate your situation and advise you about the available options in your case.
Contact us or call today to learn how Shaw Law can work with you to achieve the best outcome possible for you and your children.
Scott Shaw is founder and principle of Shaw Law Firm LLC, founded in 1995 and dedicated solely to divorce, family law and child custody matters that must be addressed and decided in the state of Georgia. Shaw Law Firm serves the greater Metro Atlanta area, particularly the counties of Fulton, Gwinnett, Cobb, Cherokee, Forsyth, Paulding, Henry, Fayette, Coweta, Newton, Walton, Bartow and Douglas. Schedule a consultation today at 770-594-8309.