Vacations are intended to create rest, adventure and shared experiences. Yet the relaxed mindset of a holiday sometimes opens the door to an unplanned expenditure. While many couples return home with souvenirs, thousands of Americans return with something far weightier: a deed, right-to-use agreement or leasehold interest in a timeshare. For many, this acquisition was never part of the original travel plan.
In the moment, the happy couple likely found their purchase surprising and thrilling. In my experience, if their marriage comes to divorce, neither party wants the associated liability, and each tries to pass it off to the other. This is why timeshares often become a hot potato during negotiations.
The Psychology Behind Timeshare Sales
More than 10 million Americans own timeshares, a number driven in large part by polished high-pressure marketing strategies. Vacationers are often drawn into presentations with offers of complimentary meals or gifts. What begins as a lighthearted diversion can become an hours-long pitch designed to inspire urgency and emotional enthusiasm.
Sales teams commonly highlight luxury accommodations, glowing testimonials and the promise of an effortless travel lifestyle. As the presentation progresses, attendees may experience subtle social pressure to commit. These events tend to emphasize lifestyle benefits while avoiding contract details. Presenters often frame the purchase as “investing in a lifetime of vacations,” even though real-life responsibilities and changing circumstances may limit long-term use.
“Today-only” pricing and comparisons between timeshare costs and projected decades of hotel stays reinforce artificial urgency and discourage buyers from seeking independent information. These techniques work. Industry estimates indicate that 10 to 15 percent of presentation attendees make a purchase. Unfortunately, approximately 85 percent of all owners report buyer’s remorse, often attributing their regret to sales tactics that obscured long-term obligations and limited opportunities for thoughtful decision-making.
It should be noted that not all timeshare companies employ deceptive sales techniques. Many are committed to ethical marketing practices. Their success stems from providing full and accurate information. Transparent fees, clear contract terms and honest promotional materials allow consumers to evaluate the product without haste or duress. This model strengthens consumer trust and supports the long-term credibility of the industry.
Timeshares Are Not Investments or Assets
Although frequently marketed with language suggesting financial benefit, timeshares do not behave like investments. They rarely, if ever, appreciate, nor are they a form of liquidity. Their value lies in vacation access, not financial return.
Timeshares often sell at steep losses due to oversupply and limited market demand. Many units depreciate by as much as 70 percent and high volumes of owners seeking exits further depress resale pricing and lengthen time on the market.
Ongoing financial obligations add to the burden. Annual maintenance fees, special assessments and administrative charges create long-term costs. Ernst & Young LLP’s 2025 Timeshare Industry Report notes that average annual maintenance fees reached $1,480 per weekly interval equivalent, a 36 percent increase since 2020. These fees typically rise every year, often outpacing inflation. Over two or three decades, fees can total $30,000 to $50,000 even before special assessments for renovations or upgrades.
Additional costs arise in point-based programs, where dues, reservation fees and exchange-network charges can add hundreds of dollars to an already significant annual obligation. These recurring expenses continue regardless of use.
Ownership Structures and Their Impact on Divorce
Timeshares can be structured in several ways, and each form carries different rights, restrictions and long-term financial implications. These differences become important during a divorce, when the interest must be valued, assigned or transferred. Understanding the ownership structure helps determine available settlement options, potential liabilities and whether either spouse can realistically retain the property.
Deeded Timeshares
Deeded ownership provides fractional ownership of real property, usually tied to a specific resort and often a specific week. Because it is real property, division in divorce may require a deed transfer, proof of clear title and resolution of outstanding balances. Valuation may be challenging due to limited resale markets. Deeded interests may also be foreclosed upon for nonpayment, a risk that spouses must consider before deciding who—if anyone—should keep the timeshare.
Right-to-Use (RTU) Timeshares
RTU contracts grant long-term usage rights, typically lasting 30 to 99 years, without conveying real property. These arrangements often restrict transfers, require developer approval for assignments and may carry expiration dates that reduce market value over time. Although repossession for nonpayment does not lead to foreclosure, it can still result in negative credit reporting or related financial consequences. During divorce, the parties must consider these limitations, as they affect whether the contract can be transferred, sold or equitably assigned to either spouse.
Leasehold Timeshares
Leasehold timeshares operate under agreements that terminate on a fixed date. Although the rights may resemble other structures, the diminishing lease term affects valuation and long-term usefulness. With no perpetual interest and limited transferability, spouses must weigh whether the remaining lease period justifies continued responsibility for maintenance fees or whether assigning or disclaiming the interest is more practical.
Points-Based Systems
Points-based programs provide an annual allotment of points that can be redeemed across a network of resorts, offering flexibility but added administrative complexity. Because these systems are governed by program rules instead of real property law, valuation depends on point availability, account status, reservation restrictions and outstanding fees. In divorce, spouses must consider whether joint use is feasible, whether one party can maintain the account alone and how future point allocations or liabilities should be divided.
Options for Dividing Timeshares in Divorce
When addressing timeshares, there are generally three possible outcomes: the couple retains the interest jointly, one spouse receives it or the timeshare is sold.
Both Parties Retain the Timeshare
If both spouses want continued access, the settlement must define usage schedules, responsibility for annual fees, procedures for reservations or point exchanges and remedies for nonpayment. Requirements vary by ownership type and company rules. Points systems may require allocation of annual points, while deeded weeks may require assignment of specific dates.
One Party Buys Out the Other
When one spouse will retain the timeshare, establishing a fair market value is essential. Valuation may use resale data, a comparative market analysis or an appraisal. Buyouts may occur through direct payment or asset offsets. Transfers usually require developer approval, transfer fees and submission of deeds or assignment forms depending on the type of ownership.
The Timeshare Is Sold
Selling a timeshare can be taxing. Many units remain on the market for extended periods and sell at steep discounts. Maintenance and other fees continue during the listing and any loan balance must be satisfied before closing. Some developers offer deed-back or resale assistance programs, which may provide a more efficient exit than private sales. As policies vary, owners should consult the developer or program administrator before working with a third-party reseller. Given the ongoing financial obligations and low resale values, parties should be prepared for the possibility of bringing money to the table to complete the transfer.
Mediation with Timeshare Owners
Mediation can be valuable when resolving timeshare issues during divorce. These properties may carry emotional ties, significant costs or uncertain resale prospects. In mediation, I can help spouses evaluate realistic options in a structured setting and support cooperative problem-solving. Mediation allows both parties to consider the practical implications of shared use, potential transfer or sale and solutions not typically available through litigation. Agreements can address usage schedules, fee responsibilities, transfer requirements or future sale conditions, reducing ambiguity and preventing conflict.
Your clients can count on my twelve years of exclusive experience in family mediation following my 18-year litigation career to address timeshare ownership in a way that promotes fairness, manages costs and supports long-term financial stability as they move forward.
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