Luxury Property Division in Orlando Divorce Cases
Orlando is a thriving city known for its beautiful real estate, high-end vacation properties, and booming tourism industry. Many high-net-worth couples in Orange County, Florida, own vacation homes throughout the state and beyond. When a marriage ends, determining what happens to these luxury properties becomes a critical part of the divorce process.
As a high net-worth divorce Attorney in Orlando, I help clients on both sides of this issue—whether they want to keep their vacation home, ensure a fair division of assets, or sell the property. I am Beryl Thompson-McClary, and I handle high-asset divorce cases throughout Orange County and the surrounding areas. If you need legal representation to address the division of a vacation home, call me at 1-888-640-2999 to schedule a consultation.
How Florida Law Defines Marital and Non-Marital Property
When dividing a vacation home in a Florida divorce, the first step is determining whether the property is classified as marital or non-marital under Florida Statutes § 61.075.
- Marital Property: If the vacation home was purchased during the marriage using joint funds, it is considered marital property and subject to equitable distribution.
- Non-Marital Property: If one spouse purchased the vacation home before the marriage and did not commingle funds, the property may be classified as non-marital.
- Commingled Property: If marital funds were used to pay for mortgage payments, renovations, or upkeep on a separately owned vacation home, the property may be partially or entirely considered a marital asset.
Every case is different, and courts evaluate multiple factors when determining whether a vacation home should be divided. If you are concerned about protecting your financial interests, I can provide legal guidance to ensure a fair outcome.
Options for Dividing a Vacation Home in a Florida Divorce
High-net-worth couples often have multiple options when it comes to handling vacation properties in a divorce. The best solution depends on financial goals, emotional attachments, and long-term planning.
1. Selling the Property and Splitting the Proceeds
For many couples, selling the vacation home and dividing the proceeds is the most practical option. This approach eliminates ongoing financial ties and allows both parties to walk away with their share of the property’s value. However, before selling, it’s important to consider the tax implications, market conditions, and potential capital gains.
2. One Spouse Buys Out the Other
If one spouse wants to keep the vacation home, they may buy out the other’s interest. This typically requires:
- A property appraisal to determine the fair market value
- An agreement on how to structure the buyout
- A review of financial documents to ensure the purchasing spouse can afford the property on their own
This option is often used when one spouse has a strong emotional connection to the home or when the property generates rental income.
3. Co-Ownership After Divorce
Some couples choose to continue co-owning the vacation home after the divorce. This arrangement works best when both parties have an amicable relationship and can agree on how the property will be maintained and used. A detailed agreement outlining usage schedules, expenses, and management responsibilities is essential.
4. Offsetting With Other Assets
In cases where one spouse keeps the vacation home, the other may receive a different high-value asset to offset the division. This could include investment accounts, retirement funds, or a primary residence. Equitable distribution does not always mean a 50/50 split; instead, it considers the overall division of assets.
Legal Factors That Influence Vacation Home Division
1. Valuation and Appraisal
Determining the fair market value of a vacation home is crucial for ensuring a fair division. Florida courts typically require a professional appraisal to assess the property’s value, including:
- Market trends and comparable sales
- Property improvements and renovations
- Rental income potential (if applicable)
2. Tax Implications
Dividing or selling a vacation home can trigger tax consequences. Capital gains taxes may apply if the home has appreciated significantly. Additionally, there may be tax deductions related to mortgage interest, property taxes, and rental income that should be considered in a divorce settlement.
3. Mortgage and Liabilities
If there is an outstanding mortgage on the vacation home, the court will determine who is responsible for continuing payments. In some cases, refinancing may be necessary to remove one spouse from the mortgage agreement.
4. Prenuptial and Postnuptial Agreements
If the couple has a prenuptial or postnuptial agreement specifying how vacation properties will be divided, the court will generally enforce these terms. However, disputes can arise if one party challenges the validity of the agreement.
FAQs About Dividing Vacation Homes in a Florida Divorce
Is a vacation home considered a marital asset if only one spouse’s name is on the deed? Even if a vacation home is titled in one spouse’s name, it may still be considered marital property if marital funds were used to maintain, improve, or pay for the property. Courts look beyond legal ownership to determine equitable distribution.
What if my spouse and I disagree on selling the vacation home? If one spouse wants to sell and the other wants to keep the home, the court may order the property to be sold and the proceeds divided. Alternatively, the spouse who wants to keep the home may be required to buy out the other’s interest.
Can a vacation home be divided in a way that allows both spouses to use it after divorce? Yes, some couples choose to maintain joint ownership and create an agreement outlining the terms of use. However, this arrangement requires strong communication and a legal contract to prevent future disputes.
How does rental income from a vacation home impact divorce proceedings? If a vacation home generates rental income, courts will factor this into the valuation and division process. Rental income may also impact alimony calculations if one spouse relies on it as a source of income.
What happens if a vacation home is located outside of Florida? If the vacation home is in another state or country, Florida courts may not have jurisdiction over the property. In these cases, the division must comply with the laws of the state or country where the property is located.
How can I ensure a fair division of our vacation home? Working with an Orlando high net-worth divorce Attorneywho understands Florida’s property division laws is the best way to protect your interests. An attorney can assess your financial situation, negotiate a fair settlement, and ensure all legal requirements are met.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
Dividing a vacation home in a Florida divorce requires careful legal and financial planning. Whether you are seeking to retain ownership, sell the property, or negotiate a fair settlement, I am here to help. Call me at 1-888-640-2999 to discuss your options and protect your financial future.
Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
Google Business Profile
Directions
