Many situations can complicate a divorce. Owning a second home is one of these. There are some instances in which things are straightforward, such as when each party agrees about who gets which home and is able to get mortgages and other documents in order.
Before you determine who is going to keep the vacation home, think about what you will be able to afford. There is a good chance that your income is going to decrease some as a result of the divorce. You must think about all aspects of owning the vacation home to ensure that you are able to pay for the related expenses. It wouldn’t do you any good to get the home in the divorce only to lose it or have it deteriorate because you can’t take care of the upkeep.
When you do decide that one person will keep the vacation home, you need to have the mortgage refinanced into only that person’s name. The exception to this is if one person is going to wait to receive the equity in the home. In this case, you might need to enter into an Owelty Lien Agreement that makes this much easier.
Another situation that might pose a problem during property division is if the home is in another country. Typically, homes within the United States, as well as many other countries, are governed by the divorce decree here. There is around 25 percent of the world where Texas orders won’t matter. Some areas are particularly tough because of the laws that prevent money from being taken out of the country.
Each divorce must be treated individually. You should look at things based on how they impact your life. This can help you make the decisions that might be in your best interests.