Dividing Disney and Marriott Timeshares in an Ontario Divorce

For many families in Toronto, Ottawa, and London, a timeshare was the ultimate purchase for guaranteed annual vacations. Whether it is a Disney Vacation Club (DVC) contract, Marriott Vacation Club points, or a classic deeded week in Florida, these properties hold significant emotional and financial value. ✈ However, when a marriage ends, a timeshare quickly transforms from a dream vacation into a complex legal headache. Unlike a house in Ontario, timeshares are notoriously difficult to value and legally cumbersome to transfer.

Under the Ontario Family Law Act, a timeshare is considered an asset that must be factored into your Net Family Property (NFP) equalization. The challenge is that a timeshare purchased for $30,000 five years ago is rarely worth that same amount today. Furthermore, because the physical property or the governing trust is often located in the United States, an Ontario family court order cannot directly change the ownership deed. In this guide, we outline how to value and split international vacation ownerships.

Step-by-Step Process for Dividing Timeshares in Ontario

Dealing with international property rights requires a careful strategy. It is highly recommended to have an Ontario family lawyer from our directory coordinate with a specialized timeshare title company. 💼

Step 1: Identify the Type of Timeshare Ownership

Your first step is determining exactly what you own. A Deeded Timeshare means you actually own a tiny fraction of a real estate parcel (often in Florida or Hawaii). A Points-Based Timeshare (like most modern DVC or Marriott contracts) means you own a beneficial interest in a trust or a ‘right to use’ a certain number of points annually. The type of ownership dictates how the asset is transferred.

Step 2: Obtain a Specialized Resale Valuation

For equalization, you need the Fair Market Value of the timeshare exactly on your Date of Separation. Do not use the original purchase price. 💰 Timeshares depreciate heavily on the resale market. You will need to contact a licensed timeshare resale broker to provide a written valuation of what your specific points or deeded week could actually sell for on the open market today.

Step 3: Decide Who Keeps It (Or if You Sell)

You have three options: Spouse A buys out Spouse B, you sell the timeshare to a third party and split the cash, or you continue to co-own it (which is rarely recommended due to ongoing hostility). If one spouse keeps it, the resale value is added to their side of the NFP spreadsheet, and they take over the annual maintenance fees.

Step 4: Navigate the Right of First Refusal (ROFR)

Major brands like Disney and Marriott have a Right of First Refusal. This means if you decide to sell the timeshare to a third party (or sometimes even transfer it to an ex-spouse for a set value), the parent company has the right to step in and buy it back from you at that price. 🔒 Your lawyer will need to submit the proposed transfer to the resort to obtain an ROFR waiver.

Step 5: Hire a US Title Transfer Company

An Ontario judge cannot order a Florida county clerk to change a real estate deed. If your timeshare is deeded outside of Canada, you must hire an international title transfer company. They will draft a new deed based on your Ontario separation agreement, file it with the local US county, and notify the resort’s management company of the ownership change.

Step 6: Pay the Transfer and Recording Fees

Finally, the resort management company will charge administrative transfer fees to update their internal point systems, and the local government will charge deed recording fees. 💵 Your separation agreement must clearly state which spouse is responsible for paying these closing costs.

How Much Does it Cost to Transfer a Timeshare?

Valuing and transferring a timeshare involves third-party costs outside of your standard Ontario legal fees.

• Timeshare Resale Appraisal: A formal valuation letter from a licensed broker usually costs between $100 and $250 CAD.
• Resort Transfer Fees: Major brands charge administrative fees to update the ownership. Disney and Marriott typically charge between $50 and $250 USD.
• US Title Company Fees: Hiring an American title company to draft a new deed and record it usually costs between $500 and $1,200 USD.

How Long Does the Process Take?

Determining the value of the timeshare for your separation agreement can take a few weeks. However, the actual transfer process is slow. Waiting for the resort to process the Right of First Refusal (ROFR) and having the US title company record the new deed typically takes 3 to 6 months. During this waiting period, you must continue paying the annual maintenance fees.

Timeshare Ownership Quick Reference

Frequently Asked Questions (FAQ)

Author: lawyerinfo.ca