With the rising cost of houses across the country, owning a second home is becoming further out of reach for many Americans. Still, according to the National Association of Home Builders, there are roughly 7.5 million second homes in the U.S. This accounts for about 5.5% of all homes in the U.S.
Like your primary residence, your second home is probably one of the more valuable assets you and your current spouse own. Therefore, it is probably advisable to come up with a plan for dealing with it during your divorce. When it comes to second homes, though, couples often encounter some challenges.
Your personal goals
The thought of parting with your second property may make your heart sink. Therefore, early in your divorce, you should outline your personal goals. If you want to keep the property, you may be able to buy out your spouse’s ownership interest with cash. Alternatively, you may be able to give up other assets in exchange for exclusive ownership of the property.
A limited buyer pool
It is not uncommon for divorcing couples to put their second homes on the market. If your second home is in an in-demand location, such as Lake Tahoe, you may be able to sell it for a handsome sum. Nevertheless, you may have a limited buyer pool. That is, there are likely to be fewer buyers who can afford to purchase a second home in a tony area.
Whether you decide to keep or sell your second home, you need to obtain a realistic valuation of the property. Ultimately, by working with an experienced appraiser, you have reliable information to use when making your decision.
