Who Keeps the Vacation Home or the Timeshare When We Divorce After 50?

 Posted on March 11, 2026 in Asset Division

For many couples divorcing after 50, the family home comes to mind first. But what about the lake house you have owned for 15 years? Or the timeshare your family has used every summer? 

If you plan to file for divorce in 2026, these properties can be among the hardest assets to sort out. At Divorce Over 50 - Goostree Law Group, our experienced Kendall County gray divorce attorney helps clients work through every part of their financial picture, including property that does not fit a simple split.

How Does Illinois Law Handle a Vacation Home in Divorce?

Illinois divides marital property using a rule called equitable distribution, meaning property is divided fairly, not always 50/50. Under 750 ILCS 5/503, marital property includes almost any asset either spouse gained during the marriage, even if only one name is on the deed. 

A vacation home bought after the wedding is nearly always marital property. Even a home owned before marriage can become partly marital if both spouses paid the mortgage or made upgrades using shared money.

When a court divides a vacation home, it looks at:

• How long the marriage lasted and how long each spouse owned the property.
• How much each spouse paid toward the purchase and upkeep.
• Whether the property earns rental income and who manages it.
• The full financial picture of each spouse.

According to the National Association of Home Builders’ estimates, the United States has about 5.7 million second homes, making these properties a significant part of many couples' overall wealth. In a gray divorce, how you resolve a second home can have a real impact on your financial future.

What Are the Options for Dividing a Vacation Home?

Three main options exist, and the best path depends on your finances and goals.

Sell and Split

Sell and split the proceeds. This is the cleanest option. Both spouses agree to sell, and the net proceeds are divided per the settlement. If one spouse used premarital funds for the down payment, that amount may be returned first. Selling works best when neither spouse can afford to keep the property alone.

Buy-Out

One spouse buys out the other. The buying spouse needs an independent appraisal and the means to complete the buyout through cash, a refinanced mortgage, or a trade against other assets like a retirement account. Tax consequences and retirement security deserve close attention before agreeing to a large buyout.

Co-Ownership

Continue co-owning under a written agreement. Some couples, especially those with adult children who use the property, choose to keep co-owning for a set number of years. The agreement must cover maintenance, usage, insurance, and when a future sale is permitted.

Why Are Timeshares So Hard to Divide in a Divorce?

A timeshare is not like regular real estate. Unlike a vacation home, it usually cannot be sold for anything close to what you paid. Values drop sharply after purchase, and some resorts have strict rules about transfers or deed changes. You may own a deeded interest, a right-to-use contract, or points in a resort system, and the legal rules differ for each.

Specific challenges include:

• Annual maintenance fees that continue even if neither spouse wants the timeshare.
• Resort contracts that may require both spouses to approve any transfer.
• Difficulty selling, since many timeshares sell for as little as one dollar on resale sites.
• Deed obligations that follow the assigned spouse even after the divorce is final.

Your options include one spouse taking full ownership and all future fees, both spouses working with the resort to surrender the timeshare, or trying to sell or transfer it to a third party. All of these require a careful review of the original contract. An experienced asset division attorney can help you avoid agreeing to an obligation you did not fully understand.

Schedule a Free Consultation with a Yorkville, IL Gray Divorce Attorney

Dividing a vacation home or sorting out a timeshare is more than a paperwork problem. It takes someone who understands the financial and personal weight of assets you have spent decades building. 

That is what the experienced team at Divorce Over 50 - Goostree Law Group is here for. We offer free consultations to help you protect what matters most. Contact our Kendall County, IL asset division lawyers today, or call 630-634-5050.