Carolinian
TUG Member
There is a tendency to not go the full measure to pass good title when it comes to timeshares, and divorce situations often contributes to that, helping creates clouds on good title. From my years on an HOA board, my experience is that these situations are most of the time not completely followed through and therefore leave good title in limbo. People will jump through all the necessary hoops on ownership of their home in a divorce but often not do so as to timeshares they own.
Most divorce settlements these days are handled through negotiated separation agreements, and those that are recorded are often not recorded where the timeshare is located and so are not a muniment of title to the timeshare. Even if recorded where the timeshare is located, many states may regard it as only a contract to convey property not an actual conveyance. Our resort had a number of instances of one party mailing a copy of their separation agreement to the resort to show that it was there's, but when told they really needed to get a deed recorded, that seemed to never get done. The fact that the HOA allowed them to pay the m/f and use the unit was apparently sufficient in their minds.
There were also problems when it came to those who fought over property in court, as copies of the resulting judgments were almost never recorded where the timeshare is located and are thus not a muniment of title. Even if they are, a judgment may or may not be sufficient to pass title. There may also be a need for a deed, and an attorney where the timeshare is located (or just asking the local staff of the timeshare whether they have been advised by their counsel on the subject) would be able to tell what is needed to be legal.
While I was an HOA director, we had one particular situation that illustrates how this can create problems. One couple who owned a prime summer week fought over their marital property in court. Both asked for the timeshare week. The judge ordered that both would keep ownership and use it in alternating years. Our resort was NOT an EOY resort, but the HOA did not kick up over that. Management, in this case, did not suggest recording anything as we did not want to open the EOY can of worms in any legal context. The first year, the wife paid the m/f and used the unit. The second year the husband paid the m/f and brought his new live-in girlfriend down with him to use the unit. In spite of a longstanding "no pets" policy that the husband certainly knew about, the girlfriend brought along her rather large dog. On Monday, the manager heard the dog barking and went to check it out, finding the dog in the unit. She advised them that the dog had to go immediately, and they would have a pet fine and special cleaning fee imposed. The girlfriend got in a huge huff over that and all of them left. The husband then refused to pay the pet fine and cleaning fee, which would have to be paid before the wife could use it the next year. This interfered with the wife's use of the timeshare and indeed her ownership interest, because if not paid, the entire unit/week would be foreclosed. Fortunately, the wife used a mutual friend to negotiate with the husband where he quitclaimed his interest in the timeshare to her, giving her full ownership, and then she paid for the pet fine and cleaning fee.
Most divorce settlements these days are handled through negotiated separation agreements, and those that are recorded are often not recorded where the timeshare is located and so are not a muniment of title to the timeshare. Even if recorded where the timeshare is located, many states may regard it as only a contract to convey property not an actual conveyance. Our resort had a number of instances of one party mailing a copy of their separation agreement to the resort to show that it was there's, but when told they really needed to get a deed recorded, that seemed to never get done. The fact that the HOA allowed them to pay the m/f and use the unit was apparently sufficient in their minds.
There were also problems when it came to those who fought over property in court, as copies of the resulting judgments were almost never recorded where the timeshare is located and are thus not a muniment of title. Even if they are, a judgment may or may not be sufficient to pass title. There may also be a need for a deed, and an attorney where the timeshare is located (or just asking the local staff of the timeshare whether they have been advised by their counsel on the subject) would be able to tell what is needed to be legal.
While I was an HOA director, we had one particular situation that illustrates how this can create problems. One couple who owned a prime summer week fought over their marital property in court. Both asked for the timeshare week. The judge ordered that both would keep ownership and use it in alternating years. Our resort was NOT an EOY resort, but the HOA did not kick up over that. Management, in this case, did not suggest recording anything as we did not want to open the EOY can of worms in any legal context. The first year, the wife paid the m/f and used the unit. The second year the husband paid the m/f and brought his new live-in girlfriend down with him to use the unit. In spite of a longstanding "no pets" policy that the husband certainly knew about, the girlfriend brought along her rather large dog. On Monday, the manager heard the dog barking and went to check it out, finding the dog in the unit. She advised them that the dog had to go immediately, and they would have a pet fine and special cleaning fee imposed. The girlfriend got in a huge huff over that and all of them left. The husband then refused to pay the pet fine and cleaning fee, which would have to be paid before the wife could use it the next year. This interfered with the wife's use of the timeshare and indeed her ownership interest, because if not paid, the entire unit/week would be foreclosed. Fortunately, the wife used a mutual friend to negotiate with the husband where he quitclaimed his interest in the timeshare to her, giving her full ownership, and then she paid for the pet fine and cleaning fee.