Original Message:
Our Timeshare and Divorce: How do you Value this "asset" ? (by Carvan A.):
The Fair Market Value (FMV) of an asset is a frequently contested issue in Federal Estate Tax audits and the IRS looks to comparable sales where both buyer and seller are fully informed of all relevent facts and neither is under any pressure to buy or sell. Where there is no established market and comparable sales can not be found the IRS usually accepts the opinion of an expert. While a divorce is not an IRS audit the same approach to determining FMV is probably applicable. Get a written and signed opinion of an expert in the area where the timeshare is located.
As Ken suggests, the timeshare could actually be a liability rather than an asset in today's down economy what with the maintenance fees that stretch into perpetuity! If you are dividing the marital property equally and the divorce is contentious then possibly you should agree to a high value - the price the resort is charging - and then maneuver (a don't throw me in the briar batch approach) to have the timeshare included in your spouse's share of the marital property. If it is a friendly divorce and neither party really wants the timeshare then place an agreed to value on the property and flip a coin to decide who gets it. Judges as well as arbitrators usually accept property settlements agreed to by both spouses.