When two people decide to divorce, they are forced to split up the properties they have come by in the course of their marriage according to their state’s laws. In many cases, one spouse will want what the other does not. Given how the timeshare sales-complex targets couples on honeymoon for purchase of timeshares—knowing full well that these lovey-dovey people are in full swoon of sentimentality and rose-colored hopes for their future together—it should come as little surprise that one of the properties couples at (what they imagine to be) the end of their journey together is the “ownership” they share in that silly timeshare property they signed on for. It may well be that one of the parties to this divorce will actually want the timeshare for their own. (Maybe they were the one who wanted it most in the first place.) And the other, wiser party will think here is an opportunity to get this costly monkey off their back.
Not so fast.
If there is any amount of loan balance remaining on the interest in that timeshare—and if the now-sole interest-holder in the timeshare for whatever reason fails to pay it—the now-divorced spouses will find that they still have one thing in common: they are both responsible for that debt.
A decree of divorce that hands the timeshare interest to one of the former spouses will do little or nothing to dissuade the resort owner from pursuing both of the purchasing parties for any balance that goes unpaid on the loan. Which is to say: the divorce decree, by all appearances legal and total, is only binding on the two parties to the divorce—not on third parties like creditor-resorts.
Then there’s the option of selling a timeshare in the midst of the divorce, in the case that neither spouse wants it. Hey, maybe that will be a way to recoup some of those high costs of divorce?
Nope. The resale market for timeshares is practically nonexistent. (That’s why, despite what the salespeople tell you, timeshares never count as a good investment—nor do they really qualify for an investment under the best of terms, given that they will never bring in more than they cost. They are as good an investment as a car that depreciates the moment you drive it off the lot—except that car will take you a lot farther.)
Whether you’re just getting married or are at the end of your journey together, The People’s Advocate is here to fight the good fight. We hold greedy timeshare companies’ toes to the fire. We are dedicated to doing battle with the timeshare lobby one case at a time—and the best way to do that is by helping individuals tricked and cajoled into timeshare contracts to get out of them. Contact us today for a free information session on how we can help you.