DVC value during divorce

[Bearval]

My sister is currently going through a contentious divorce in Michigan after 24 years and they both have lawyers. They have 2 DVC contracts, 150 points at SSR and 150 at AKV. She wants both since husband hasn’t been to Disney World in 10 years and has no interest in going. During those 10 years, she and/or her kids used the points or she let our brother use them.

Husband wants $60,000 for both contracts. He said he called Disney and was told each contract was worth $30,000. He has no proof, just his word. They didn’t even pay that much when they bought the contracts, so my sister had a good laugh at that. She called Disney and was told to check resale sites for approximate value. She did that and has screen shots of what contracts like hers are going for, which she included in her counter-proposal. Husband is contesting her screen shots as proof and now wants to each take a contract. They’ve been going back and forth on pretty much everything, so they’ve going to trial in September.

The contracts are really important to her. Going to Disney with her kids was one of the few bright spots in her marriage, so she plans to fight for them. Her husband knows this, so she thinks he’s using them to hurt her. She has no problem buying him out, but not at $60,000 for both. Her lawyer knows nothing about DVC, but she thinks showing the judge the resale values will be enough to give him a valuation amount to settle on.

For those who have experience with divorce and DVC, is a resale site good enough or accurate enough for a judge? Or any advice I can pass along to her? Thank you in advance.

One possible option could be for her to pick one of the two contracts and let him keep the other. Doing it this way would give her some "grandfathered" points. What it also could do is have him "balk" at this arrangement since if he doesn't want his points he may argue they are not "worth" 30K and he will get less than half of that if he sells them. He would be pretty much admitting he knows what their true value is.

 

[Brian Noble]

Not all timeshares are created equal, there are some that are a decent value and then there are others that you cannot even give away to charities to try and get out from under the maintenance fees.

I understand that—better than you probably think. But resale value is based only on supply and demand, and that does not always track the value in usage because the latter is not obvious to someone casually in the market.

The timeshares in our portfolio have resale value between negligible and “have to pay someone to take it.” But we are each happy to keep some because they still deliver excellent value in usage.

 

[skier_pete]

Here's my feeling on this:

IF the contracts were bought direct from Disney or were bought long enough ago they have membership perks attached: Agree to keep one and he keep one. Let him pick the one if they are both the same. As long as the one you get has the full membership perks attached, 150 points means you retain full member benefits. Then take the other assets you get and buy the other 150 points on the resale market. That gets you back up to the 300 points you want. You may be sentimental towards your points, but a there is really no reason to be sentimental towards THOSE points versus any other.

IF one has direct benefits and the other doesn't, agree to split the contracts and tell him you want that particular one with the benefits but don't say its for the member benefit. It is unlikely that the lawyers or judges or he would figure it out.

If both are resale contracts with no member benefits, you are back to suggesting splitting them and it doesn't matter which one you keep. Or let him keep both at HIS valuation if they'll let you get away with it and then just replace them.

I realize you are saying you have emotional attachment to the contracts, but what you have is emotional attachment to the TRIPS. You don't really need THESE contracts to keep having the trips with your kids - just make sure you get your fair share out of them and then replace them.

 

[Bearval]

I understand that—better than you probably think. But resale value is based only on supply and demand, and that does not always track the value in usage because the latter is not obvious to someone casually in the market.

The timeshares in our portfolio have resale value between negligible and “have to pay someone to take it.” But we are each happy to keep some because they still deliver excellent value in usage.

You hit the nail on the head concerning usage. Too many people think of them as an investment where in reality it is a consumable product where the best value is in using it as designed.

 

[LuvOrlando]

Is there a reason to not split the proceeds and just buy a new contract with it this way ex can't over inflate value and waste time and effort? Ex might just be digging in to get to her.

 

[Bearval]

Is there a reason to not split the proceeds and just buy a new contract with it this way ex can't over inflate value and waste time and effort? Ex might just be digging in to get to her.

The problem is the contracts were purchased awhile ago and were direct or resale grandfathered. To purchase them resale would come with the new restrictions and no blue card benefits. I believe that is what she is trying to avoid.

 

[gmi3804]

The problem is the contracts were purchased awhile ago and were direct or resale grandfathered. To purchase them resale would come with the new restrictions and no blue card benefits. I believe that is what she is trying to avoid.

I wish people would stop overstating the importance of "benefits." To wit, look at all the eligible members who were just shut out of the latest Moonlight Magic event. Paying for benefits that you likely will never use/need is an expensive proposition. Get over the FOMO and use that extra money elsewhere!

 

[Sandisw]

I wish people would stop overstating the importance of "benefits." To wit, look at all the eligible members who were just shut out of the latest Moonlight Magic event. Paying for benefits that you likely will never use/need is an expensive proposition. Get over the FOMO and use that extra money elsewhere!

While MM may not be one to consider, the access to the Sorcerer Pass can be a big deal. It is for us.

Plus, it’s not just membership extras…it’s access to RIV, VDH, CFW, and potentially all future resorts.

I can understand why coming to an agreement about them is better than a forced sale.

 

[gmi3804]

While MM may not be one to consider, the access to the Sorcerer Pass can be a big deal. It is for us.

Plus, it’s not just membership extras…it’s access to RIV, VDH, CFW, and potentially all future resorts.

I can understand why coming to an agreement about them is better than a forced sale.

I didn't realize that only Blue Cards could purchase the Sorcerer Pass; that is a big deal. But still, is it tens of thousands in value? And who knows if that will even be in play for forty years, or however long the contract is.

 

[Yinn]

I wish people would stop overstating the importance of "benefits." To wit, look at all the eligible members who were just shut out of the latest Moonlight Magic event. Paying for benefits that you likely will never use/need is an expensive proposition. Get over the FOMO and use that extra money elsewhere!

Idk…we became blue card members in 2019. After the minimum, the rest of our points are resale.

We’ve used the lounges on every trip and we average 2 MM events a year and the pass. There are many who will not have a payback, and there are many who will.

The MM events for a party of 6-8 would be thousands worth for a typical evening event for example.

 

[Brian Noble]

Regarding the benefits: On average, their value has to be less than it costs to get them. That's because they are paid for out of the marketing budget. And yes, while it is possible to drown in a river with an average depth of 3', it is also true that by definition most people are not exceptions.

 

[Sandisw]

I didn't realize that only Blue Cards could purchase the Sorcerer Pass; that is a big deal. But still, is it tens of thousands in value? And who knows if that will even be in play for forty years, or however long the contract is.

It can be. We have, right now, 9 people who get them…at $450 each, thst is over $3600 a year.

Now, there are a few not getting renewed this upcoming year, but for the few years we have all gotten them, we are at almost $10K.

So, while no one should ever buy just for membership extras, they are a nice addition if what you want is access to the restricted resorts, so younwould be buying direct anyway.


In the OPs case. It makes sense to try and salvage the benefits they have.

 

[DVCanadian]

The problem is the contracts were purchased awhile ago and were direct or resale grandfathered. To purchase them resale would come with the new restrictions and no blue card benefits. I believe that is what she is trying to avoid.

I don’t believe the OP has confirmed anything about the contracts being direct or resale, pretty sure that is just other posters’ speculating and proposing what if scenarios.

OP hasn’t been seen since post 14…thread is at 90+ posts