DVC Contract and divorce

[mbrowninc]

Recently divorced and SSR contract in both mine and exhusbands name. Any way of getting him off even though I still have a loan through disney? Divorce papers do state that I have full ownership/liability if that matters.

TIA
Melanie

 

[Chuck S]

I would have your attorney contact Disney. They may not do anything until it is paid in full. While you have an agreement between you and your ex that YOU are responsible, the financing is still under both nomes, and Disney may not wish to waive the ability to go after your ex if you default.

 

[darby74]

Melanie,

There's a bit of work to get things re-registered after a divorce. I called up DVC and asked them the procedure (you'll be routed to someone who can walk you through the steps, membership accting maybe?). If I recall it involved getting a letter from disney approving the re-registration into your own name, creating a new deed, and registering that deed with orange county. If you search the boards for DVC and divorce you may find that someone has walked through the steps in further detail. I recall it being a slight pain in the rear and did take some time, but if you followed the directions it worked alright. You'll have to get your ex's signatures on some of the paperwork, so there's some potential unpleastantness there.

Best of luck.

 

[Dean]

It's unlikely you'll be able to do so while you still have that loan. Any debt you have with both your names is still the obligation of both parties no matter what your divorce papers say. That includes credit cards, mortgages, cars, etc. Here is the info from the instructional letter from Disney on transfers (including adding or removing a name).

DUES AND LOAN AMOUNTS:
If the Owner(s) obtained financing at the time of purchase from DVD, the mortgage loan must be paid in full prior to any change in the Ownership Interest. Annual dues for the calendar year must be current and may need to be paid in full depending on the type of change.

The only other option would be to get the mortgage company to release your husband which they are unlikely to do as Chuck points out. The actual transfer itself it pretty simple. Fill out the transfer request, get a new deed done, DVC sends you ROFR, download the tax form, send the deed, form, ROFR and money to Orange County then send a copy of the recorded deed to DVC to change the records.

 

[Kurby]

couldn't you "sell" the contract to yourself?

 

[Dean]

couldn't you "sell" the contract to yourself?

The same rules would apply, that's essentially what a transfer is. If you sold it for $$$, you'd have to pay additional taxes on that through the county.

If it were me I'd make arrangements for a different loan, possibly a home equity or similar. This may very well be at a cheaper rate anyway. Then I'd get all the paperwork together, get the deed and transfer forms ALL signed by all parties. I'd then coordinate with DVC to pay off the existing loan and get the ROFR as one process. Once I had that, I'd send it all to be filed and then copies of the filed documents back to DVC to change it over ASAP. Regardless, I'd do whatever it took to get it changed since if the other party has financial problems it could affect the ownership no matter what the divorce decree says. And if there is not a good working relationship with the other party they could make changes, transfer points, make reservations, etc if they so chose. The only caveat is to make sure one isn't putting their primary residence at any real risk in this process. The other approach is just to get it paid off ASAP and then follow the same game plan.

 

[CarolAnnC]

They could also sell the DVC contract, satisfying the loan and dividing the proceeds as the court decided. Then she could purchase her own DVC and start over without the husband involved.

May not be the wisest financial choice but could be the easiest way emotionally to get through this.

Good luck to the OP!

 

[Dean]

They could also sell the DVC contract, satisfying the loan and dividing the proceeds as the court decided. Then she could purchase her own DVC and start over without the husband involved.

May not be the wisest financial choice but could be the easiest way emotionally to get through this.

Good luck to the OP!

At a cost of around 10% of the sale price plus the difference in price and closing costs associated with securing the replacement. You'd also have to get the other party to sign away their rights to the money as part of the closing, something that might be more difficult than getting them to sign away a debt. A divorce decree will not be enough to get the closing agent to send all the money to the right person in their name only. Selling only makes sense if one doesn't want or isn't able to own DVC at this time, doing so to effect a name change would be an extremely expensive and far more difficult approach to this issue. One that actually increases the risks and aggravations with nothing in the process that makes it easier to get to the desired end point.

 

[mbrowninc]

Thanks everyone for all the info!

Am currently in the process of selling the contract. Breaking even will have to pay nothing just losing my DVC membership. We were not DVC owners very long only 1 year before this happened. We are losing 10% down payment etc. but we did take almost 3 weeks worth of vacations last year with points. Planned on buying back in immediately.

Ex-husband not to smart about this situation (too many assets to worry about and self-employed) and not into DVC he actually thinks I have already sold it.

Never thought about selling it to myself.

Melanie