More than Just the House: Don't Forget These 5 Assets During Divorce

When a couple gets divorced, they also must divide the assets that they once shared. They need to reach agreements about who gets the home, who gets the boat, who gets the timeshare, who gets the furniture... It can be difficult to account for everything you and your spouse own during the emotional roller coaster of divorce proceedings.

While these choices are important, it is crucial to account for other significant assets, too. Before you jump headfirst into final decisions about your home, consider the way these five other common assets could affect your future.

Second homes

Perhaps the most obvious additional asset is a second home. Many couples share a cottage, cabin, or condominium that they use for vacations.

When considering any asset during divorce, the concept of separate versus marital property is important. Marital property is generally defined as an asset or debt acquired by the couple during the course of the marriage. Separate property is an asset or debt acquired either before the marriage or after separation. Inheritances or gifts given to one partner during the marriage are often still considered separate property.

If you have a second home, consider when it was purchased and the current ownership structure. Vacation homes are often co-owned by family members or passed down through generations. If that’s the case, it may be considered the property of the spouse who belongs to the original purchasing family.

2. Timeshares

Another common asset is a timeshare, in which multiple parties share one vacation home and have access to it during specified times of the year. There are two main types of timeshares:

Shared-deed ownership: Each owner has a fractional ownership share of the deed; one-fifty-second ownership means you have the right to the property one week out of the year. This type typically has no set end-date and can be resold or willed to others.
Shared-lease ownership: These owners pay for either a fixed or floating week or weeks of each year for a certain number of years. This type is considered more difficult to resell.

If your timeshare lease won’t expire for several years, that is an important factor to consider in asset division. Also consider if your timeshare is separate or marital property.

3. Rental properties

A third category of significant asset is rental properties that you and/or your spouse own and rent out to others. If you run an AirBnB, lease out a duplex in a residential neighborhood, or own a strip mall, these properties must become a part of your divorce discussion.

Make sure you account for:

The percent of shared household income your rental properties make up
Whose name the titles are in
Whether or not the rentals relate to a business, such as an LLC that you also own
Who is responsible for property management

4. Undeveloped land

If you and/or your spouse inherited or purchased property with the hopes of building on it someday, this is an asset that will also have to be divided up appropriately. If it only belongs to one of you the answer is simple; if it belongs to both of you, you’ll want to consider the possible outcomes.

For example, if you still want to build on it in the future, this may influence whether or not you’re willing to let your spouse retain your primary residence. Don’t forget to account for whether or not the property is ready to be developed with electric and septic hookups ready to go.

You could also consider selling the property to help fund the purchase of a new residence or to offset the cost of divorce proceedings.

5. Vehicles

Finally, vehicles are considered an asset as well. While this includes cars and trucks, it also extends to boats, campers, and motorcycles.

Recall the separate and marital property rules to determine who owns which vehicle. Sometimes an argument can be made that something is marital property even if it is deeded to just one person. For example, a boat may be in your partner’s name, but if you’ve been paying off the debt together throughout marriage, it might be considered marital property.

Mediation can help

If your head is spinning as you think through the endless ways these assets might affect your future residence and lifestyle, that’s understandable. Here at Haas Mediation, we take pride in our detailed approach that helps guide a couple through the minutiae of asset division while preserving their ability to make their own decisions.

In divorce mediation, couples get to decide who gets what in a way that works best for them. They are not beholden to strict separate and marital property rules in the way a court often is. Sign up for a free 15-minute consultation today so we can help you decide your next right step in this process.

Interested in learning more?

- Andrew Haas, Founder & Principal Mediator

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