Questions about splitting contracts during divorce

[mickeywho?]

So life has changed to the extreme since I was last on the dis! Cheating x - mid-life crisis - left the family and is still running...I'm sure you've heard it all before.
Anyways - here's the question. We have multiple contracts.
160pt SSR (purchased from disney)
50pt SSR (purchased from disney)
50pt SSR (purchased resale but before change in rules)
25pt SSR (purchased resale but before change in rules)
150pt VB (purchased resale after change in rules)

We're starting to deal with division of property. He wants to sell his half to me (doesn't want to deal with anything that's work for him). I think the more reasonable solution is to split (transfer ownership?) of contracts and then we each can sell, giveaway, use or rent the contracts in our own name. Considering the resale market is not a guarantee of a sell (and our dollar is constantly fluctuating in value) I don't want to be stuck, and already have paid him for contracts that I can't afford to keep.
All contracts have been paid in full - no loans. So it's just annual dues and they'll be coming January 1.

Any suggestions? Advice? What would you do?

 

[cel_disney]

How many points would you want to keep?

 

[mickeywho?]

I would likely want half - SSR points preferred as I would use them at WDW. But it's not something I want to spend a lot of arguing or legal fees figuring out. So I just want what's reasonable/fair in value??
I would give him a larger balance of points as incentive to just deal with it. My boys are older so we had already talked about going less often or for shorter trips. So vacation priorities are changing too.
I could offer to take the 160 and 25 pt contracts and he could have the balance?

 

[disneynutz]

I would offer him below below market rate -10% to take his name off of the deeds and be done with it. Rent the points to cover your dues, decide which contracts to keep, and sell later depending on how you feel and what you want to do.

Bill

 

[drusba]

If he wants out completely making a split offer may not work. One option to avoid paying him for half is decide what contracts you want to keep, perhaps totaling somewhat more than half and then sell the rest through a broker now (before doing any split) and he keeps the proceeds from the sale. Note, if I actually had the money now (which can obviously be a problem when going through a divorce) I would take him up on paying him for his half but offer significantly less than market, i.e., in determining price to pay him for half you should first deduct at least estimated closing costs and broker fees that would otherwise be incurred if you went through a sale in the market and then divided proceeds.

 

[mickeywho?]

If he wants out completely making a split offer may not work. One option to avoid paying him for half is decide what contracts you want to keep, perhaps totaling somewhat more than half and then sell the rest through a broker now (before doing any split) and he keeps the proceeds from the sale. Note, if I actually had the money now (which can obviously be a problem when going through a divorce) I would take him up on paying him for his half but offer significantly less than market, i.e., in determining price to pay him for half you should first deduct at least estimated closing costs and broker fees that would otherwise be incurred if you went through a sale in the market and then divided proceeds.

Yup - definitely don't have the cash to offer him to buy him outright. It may be easiest to offer to list all contracts and split the proceeds if/when they sell (so that we are each taking the same loss etc with fees) OR offer to transfer half the contracts to his name and and half in mine and then we are each responsible for the sale/expenses of our own contracts. He's very difficult to deal with (he makes 200,000/yr while I make very little as I've been a sahm for 17 years - and he thinks it's reasonable to offer 2 years of minimal spousal support and is already 8 months behind on his child support) Ugh - I'm divorcing THAT kind of greedy idiot. So I'll have to offer him something that has him feeling he's getting his way.

How do I find out about the costs/fees and likely sale price for these contracts?

 

[Msmithmd]

Gentle advice, if you've been a stay at home mom and your ex is behind on child support and resistant to alimony, personally I would advise you to just sell all the contracts now, split the proceeds, and consider buying back in in the future when you're past all this. Then you can see how (or if) DVC fits into your budget.

There's nothing wrong at all about vacationing at a cash resort or off property- for many people this is an attractive and much less expensive proposition.

It seems like holding on to any portion of these DVC contracts currently might be more of a burden than a blessing, but only you know all your future finances and can decide.

As to where to find out pricing, contact the timeshare store or any of the other high volume DVC resale brokers, and they can help you out, probably very quickly. Good luck...

 

[Sur]

He's greedy to the point of taking from his kids.. That stinks (I changed my choice of words)! I'd give him the VB and call it even. Let him deal with the high dues.

 

[mickeywho?]

OK - sent him this as first offer:

I've contacted DVD regarding removal/transfer of names off the deeds. Easiest way to do it is remove my name off half and your name off half so that we can each deal with sale etc as there are multiple contracts.
We have 5 contracts total - true value won't be determined until they actually sell. My suggested split is:
A) 160 pt SSR + 25pt SSR
B) 150pt VB + 50pt SSR + 50pt SSR
As soon as transfers happen we can each get sales done as quickly as we want. The smaller contracts sell very quickly but the larger ones may take some time. We can split the cost of any fees to transfer

If he turns it down I'll offer a low-ball buy-out of his half and he will pay fees to transfer. I don't want to be stuck for long with contracts I can't afford. Last option would be to list all contracts and negotiate the sale together (he's a nightmare to communicate with so not really an option I want to take) If I can get him to agree it will be one thing lawyers won't make money on. Divorce is expensive! (but that's because it's worth it )

 

[twinsouvenirs]

Can you sell half and apply that $ to the child support arrears?

 

[CarolMN]

Can you sell half and apply that $ to the child support arrears?

Can't sell jointly owned assets without both signatures. Check for proceeds will be made out to both owners. Need both signatures to cash.

 

[lisaviolet]

Do you know that you are subject to a 10% withholding tax that you will have to do a lot of paperwork to get back (being Canadian - foreign owner), if you do decide to sell?

Just making sure.


_________________________________________________

I'm very sorry for all that you're going through, all the best to you.

 

[mickeywho?]

Do you know that you are subject to a 10% withholding tax that you will have to do a lot of paperwork to get back (being Canadian - foreign owner), if you do decide to sell?

Just making sure.


_________________________________________________

I'm very sorry for all that you're going through, all the best to you.

No - I didn't know that! I have an idea of what it would cost re the commission/fees through a listing agent. Would they also deduct the 10% tax from the sale? Is the seller responsible or the buyer?

 

[supersnoop]

No - I didn't know that! I have an idea of what it would cost re the commission/fees through a listing agent. Would they also deduct the 10% tax from the sale? Is the seller responsible or the buyer?

You owe the U.S. government taxes on any profit from the sale. Since you don't live here, they take 10% off the top in case you don't bother to file. You might owe more, or you might not owe any. But it's all based on what you paid and what you sell for, so it's all your responsibility and withheld from your proceeds.

 

[lisaviolet]

No - I didn't know that! I have an idea of what it would cost re the commission/fees through a listing agent. Would they also deduct the 10% tax from the sale? Is the seller responsible or the buyer?

Yes, the broker would send it in themselves from your sale at closing. It's in addition to commission, not connected at all. It's from you, you being the foreign owner - US government rules.

(Ie. It's not part of the sale, re: any kind of negotiation of terms or anything. It's a tax on you selling.)

FIRPTA http://www.irs.gov/Individuals/International-Taxpayers/FIRPTA-Withholding

 

[dominiondad]

I would suggest that you work through an attorney and handle the division of all property at one time. Trying to divide your property one item at a time will drag out the drama and the stress. It would appear that you have the upper hand given his previous behavior and current status re child support. Make an offer, via an attorney, for the division of all property that works for you.

 

[mickeywho?]

Yes, the broker would send it in themselves from your sale at closing. It's in addition to commission, not connected at all. It's from you, you being the foreign owner - US government rules.

(Ie. It's not part of the sale, re: any kind of negotiation of terms or anything. It's a tax on you selling.)

FIRPTA http://www.irs.gov/Individuals/International-Taxpayers/FIRPTA-Withholding

ok - good to know. I want to be realistic about what I would receive after all is final so it's good to keep that 10% in mind too.

Thanks!

 

[mickeywho?]

I would suggest that you work through an attorney and handle the division of all property at one time. Trying to divide your property one item at a time will drag out the drama and the stress. It would appear that you have the upper hand given his previous behavior and current status re child support. Make an offer, via an attorney, for the division of all property that works for you.

We've been trying that - but he's ignoring, delaying...

I'm hoping that dealing with one smaller thing at a time between us that he will be agreeable then will limit the arguments to the last few key things that are much much bigger. I'd rather my lawyer spend time and $$ focusing on support issues. Just my couple of emails with him today would have cost me $$ in her dealing with it as part of the settlement. It still might if he chooses to not agree - if he does agree it may save us both a bit overall. It's a gamble...

 

[lisaviolet]

ok - good to know. I want to be realistic about what I would receive after all is final so it's good to keep that 10% in mind too.

Thanks!

You're welcome.

All the best with your choices. I just know that it is not fun to find another headache around the corner.