DVC buyout

[pkingjr]

Hello all. I'm new here but have known of the disboards for years and I'm hoping all of you can provide some guidance. I'm in the unfortunate position of having just got divorced and am now dealing with community property. My ex and I purchased into DVC early in our marriage and it is paid off. My ex is wanting our DVC in her name only. I'm not just going to give it to her though and find it only fair that she buy me out for my half of it. But I have no idea on how to determine what a fair buyout price should be. Any advice?

Thanks!

 

[_auroraborealis_]

You can research current sales pricing via DVC resale sites.

 

[kilik64]

Yup as posted above, good place to start would be here

https://www.dvcresalemarket.com/blog/dvc-resale-average-sales-prices-for-august-2021/
largest reseller by volume so decent way to help determine value of contract based on most recent months sales per point.

 

[Marionnette]

You can research current sales pricing via DVC resale sites.

Although, if the contract was a direct purchase, the fair-market value would be what DVC is charging for direct purchases, no?

 

[cheryl.UK]

Although, if the contract was a direct purchase, the fair-market value would be what DVC is charging for direct purchases, no?

Just like any other asset, the value is what you can sell it for, not what you can buy it for. If it were a car, the value would be the selling price not the price you would have to pay for a new one at a dealership. If it were the latter, then one partner could end up with far more than the other.

 

[Nabas]

Although, if the contract was a direct purchase, the fair-market value would be what DVC is charging for direct purchases, no?

Assets should be judged on the value they could be sold for, not the highest price that they could be bought for.

Direct from Disney are priced at a premium. In this case, the OP would be selling at the resale price, not the direct price.

 

[starry_solo]

Assets should be judged on the value they could be sold for, not the highest price that they could be bought for.

Direct from Disney are priced at a premium. In this case, the OP would be selling at the resale price, not the direct price.

Except, if they bought direct from Disney, they have the benefits grandfathered in.

So, I would go somewhere between resale price & direct from Disney.

Obviously, if the DVC was purchased after all the restrictions, than you wouldn't look at the direct from Disney price...

 

[Marionnette]

Assets should be judged on the value they could be sold for, not the highest price that they could be bought for.

Direct from Disney are priced at a premium. In this case, the OP would be selling at the resale price, not the direct price.

Just to play devil's advocate here, can we not agree that a resale contract and a direct contract have different values based on resale restrictions that prevent usage of the points for DCL, the Concierge Collection, etc and that resale memberships cannot access membership extras?

And would it not be true that by signing a quit claim deed, the OP would be turning over full ownership of a direct contract (assuming that was how it was purchased) and not a resale contract that carries fewer benefits and restricted use?

And so, given that the only way to obtain a direct contract would be thru DVC, would it not make sense that the value of the contract is what DVC sells it for?

 

[_auroraborealis_]

The standard in a divorce is the value the asset can be sold for, unless the litigants agree otherwise.

Arguing it out probably ends up costing more in legal fees than the asset differential value.

 

[kilik64]

If op wants to stick it to ex they can force it to be sold and they each get half the proceeds. They’d split what the contract is worth when sold resale.

Consult your divorce attorney too.

 

[MistisoMan]

Hello all. I'm new here but have known of the disboards for years and I'm hoping all of you can provide some guidance. I'm in the unfortunate position of having just got divorced and am now dealing with community property. My ex and I purchased into DVC early in our marriage and it is paid off. My ex is wanting our DVC in her name only. I'm not just going to give it to her though and find it only fair that she buy me out for my half of it. But I have no idea on how to determine what a fair buyout price should be. Any advice?

Thanks!

As a seller I'd show the resale sites. As a buyer I'd show the ROFR thread.

 

[chicagodisneyguy]

Since you said early in your marriage I'm guessing you've had the contract for awhile. If you had bought within a year or two ago I think a case could be made for a valuation near direct. But anything outside that is closer to somewhere between the ROFR and current list prices. I think an average of current list prices is probably easier as it's easier to confirm. The lawyer hours to search the OC website to confirm the actual sales probably isn't worth the billable hours for your ex to save the $5-$10 a point.

I'm a bond trader and have seen many of my idiot co-workers get absolutely destroyed in divorces. It's a tough situation and hopefully you guys are cordial. I would pick a fair range and figure you aren't paying the 10% commissions so if it's anywhere in the ballpark of current pricing be done with it and move on.

 

[jbreen2010]

So sorry to hear this.

in comparing pricing you can compare resale prices but since it’s an old contract and presumably you’re also grandfathered in with a blue card, there is likely a bit more intrinsic value than just resale pricing.

when you’re logged into the DVC site, click on the add on tool as if you were going to buy direct from Disney and that is the current direct sales prices.

you could probably average those with the resale prices to be fair…or just use the current direct prices if that’s how you bought it to be fair.

 

[Sandisw]

Sorry you have to go through all of this. But, if use the ROfR thread as a guide.

You don’t mention how many points but given a 50% split, I think it gives a general value that is fair to both.

Good luck.

 

[macman123]

You have 2 ways.

1) Through Right of First Refusal
2) The average selling price

Both are available here:

1) https://www.dvcresalemarket.com/blog/dvc-right-of-first-refusal-report-rofr-august-21/
2) https://www.dvcresalemarket.com/blog/dvc-resale-average-sales-prices-for-august-2021/

 

[crisi]

Honestly, aurora is right....but with a caveat.....don't negotiate over the price of this, barter for something of equal emotional importance. You indicate you've been married for a while, there are marital assets up the yango. Two cars, a house, DVC, pots and pans, furniture, sporting goods. Please do not ask me about the $200 pair of snowshoes that ended up costing me $1500 in attorney's fees - and it wasn't even MY divorce (my husband paid for my late brother in law's attorney - $20,000 later two misguiding and financially incompetent individuals had managed to swap $4000 in assets around. However, he only ended up with HALF of the mountain of debt (and a pair of snowshoes), which is why we paid for the attorney). Make a list of what you want, what she wants and trade until you both feel you've gotten the stuff that is important to you. If the DVC is important to her, be gracious, as long as she lets you take the things that are important to you.