Hawaii Timeshare Division in Divorce Two Step

A Hawaiian timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Removal is a two-step process; documents are first filed with the State of Hawaii and then with the resort management company.

Until one spouse is removed from title, both spouses will have access and use of the timeshare even after separation or divorce. Both are also responsible for the maintenance fees and property taxes. Until the former spouse is removed from title, the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death. 

Maintaining an accurate, timely and permanent record system of timeshare ownership is the responsibility of the State of Hawaii Bureau of Conveyances. Ownership change is by deed. A deed is an 8 ½ by 11 inch document.

The contents and format of the deed are strictly mandated by Hawaiian law. Any deviations can cause the deed to become invalid.

For instance, no wording may appear on the top three inches of the first page. On the first page the tax map key, internal control number and reference to the prior recorded document must appear. In the document, the legal description must also be provided.

In Hawaii a deed must have attached to it Form P-64B, ‘Exemption from Conveyance Tax.’ Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers due to divorce and dissolution of marriage are exempt from transfer tax. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

Once the quit claim deed has been recorded with the Bureau of Conveyances, it is returned by the Bureau with proof of recording. The owner must then provide the recorded deed to the resort management company in order to update the account records for reservations, accounting and billing. The resort management company may have its own forms to complete and may also charge a fee to update their records.

Service to prepare and record the deed is available at Deed and Record

Deed and Record is an online service to prepare quit claim deeds for real property transfers into or out of trusts, remove former spouses and gifting. Deed and Record does not offer legal advice or services.

Posted on Feb 19, 2014

Hawaiian Timeshares in California Divorce

In dissolution of marriages and divorces timeshares in Hawaii are awarded to one spouse. Tip Sheet by Mark W. Bidwell on how to transfer Hawaiian timeshare ownership due to divorce.

Marital settlement agreements for dissolution of marriage and divorce divide ownership of assets of the marriage between the spouses.  But the change of ownership of a Hawaiian timeshare is not complete until the State of Hawaii’s database and the resort management’s accounting records are updated.

Hawaii maintains a statewide database of who owns each timeshare in Hawaii. This database is final and conclusive. The database is maintained by the Bureau of Conveyances. The Bureau of Conveyances will only update its records upon receipt of a “deed.”

A deed is at a minimum a 8 ½ inch by 11 inch paper in a format defined by the laws of Hawaii. The deed is signed by the non-owning spouse. His or her signature must be notarized and the notary must be either on the deed or attached to the deed.

 

The deed must also include the “interval control number” and “legal description.”  The legal description for timeshares in Hawaii is most often several pages in length and uniquely identifies the timeshare.

There are two types of deeds, warranty deeds and quit claim deeds. Warranty deeds promise good title and the absence of debt and liens. Quit claim deeds convey property “as is.” Because the spouses in the divorce have established the condition and value of the timeshare in the divorce process, the best deed is the quit claim deed.  The conveying spouse is basically saying: “here is the timeshare as it is, in whatever condition it is in as we agreed in the divorce settlement.”

 

The deed must be recorded with the Bureau of Conveyances.  With the deed “Form P64B — Exemption from Conveyance Tax” must be submitted.  The Bureau records the deed and assigns a unique number and date of recording. A copy of the recorded deed is submitted to the resort management for them to update their records. The resort management may have its own forms to be completed and may charge a fee for updating their files and accounting records.

 

Until ownership of the Hawaiian timeshare is changed both spouses are responsible for the maintenance fees. The owning spouse cannot sell or transfer ownership.  On the death of the owning spouse the other spouse will inherit the Hawaiian timeshare. To make the divorce final and complete the quit claim deed must be prepared and recorded with the Bureau of Conveyances.

Posted on Dec 20, 2013

Use quit claim deeds for transfers

This Tip Sheet advocates the use of quit claim deeds to fund trusts, remove a spouse as co-owner pursuant to divorce or dissolution of marriage, and to give away a timeshare.

A quit claim deed transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

Quit claim deeds can be used to give away timeshares in Hawaii. Timeshares are most often gifted to children of the owners. Other owners want to gift to nieces, nephews, other relatives or friends. Sometimes a ‘gift’ occurs when the timeshare owner sells the timeshare for nominal value.  

A quit claim deed works in gifting because little or no money is exchanged and the parties know each other. Gifting may have income tax, capital gains tax or gift tax consequences. Owners are advised to consult with a tax accountant for tax consequences of gifting a timeshare by quit claim deed.

Quit claim deeds can be used to fund trusts and avoid probate. Hawaiian timeshares not owned or titled in a trust are at risk for probate.  A timeshare must be transferred into trust while the person is still living.  A quit claim deed works to fund a trust because no real change in ownership occurs. What is changed is how title is held.

Use quit claim deeds to remove a former spouse as owner of a timeshare. A timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Until the former spouse is removed from title the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death.  Quit claim deeds work in divorce because the parties have complete information and disclosure on the value of the timeshare and amount of debt outstanding.

Posted on Dec 20, 2013

Timeshare transfer for Divorce

Use quit claim deeds to remove a former spouse as owner of a timeshare. A timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Until the former spouse is removed from title the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death.  Quit claim deeds work in divorce because the parties have complete information and disclosure on the value of the timeshare and amount of debt outstanding.

Posted on Jan 29, 2013

Divorce, Trust and Gifts

A quit claim deed transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

Quit claim deeds can be used to give away timeshares in Hawaii. Timeshares are most often gifted to children of the owners. Other owners want to gift to nieces, nephews, other relatives or friends. Sometimes a ‘gift’ occurs when the timeshare owner sells the timeshare for nominal value.  

A quit claim deed works in gifting because little or no money is exchanged and the parties know each other. Gifting may have income tax, capital gains tax or gift tax consequences. Owners are advised to consult with a tax accountant for tax consequences of gifting a timeshare by quit claim deed.

Quit claim deeds can be used to fund trusts and avoid probate. Hawaiian timeshares not owned or titled in a trust are at risk for probate.  A timeshare must be transferred into trust while the person is still living.  A quit claim deed works to fund a trust because no real change in ownership occurs. What is changed is how title is held.

Use quit claim deeds to remove a former spouse as owner of a timeshare. A timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Until the former spouse is removed from title the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death.  Quit claim deeds work in divorce because the parties have complete information and disclosure on the value of the timeshare and amount of debt outstanding.

In Hawaii a quit claim deed must have attached Form P-64B, ‘Exemption from Conveyance Tax.’ Hawaii collects a transfer tax on all filings or recordings with the Bureau of Conveyances. But there are exclusions. Transfers in and out of a trust are exempt. Transfers due to divorce and dissolution of marriage are exempt. True gifts are also exempt. To obtain the exclusion, either the Grantor or the Grantee completes Form P-64B, ‘Exemption from Conveyance Tax’ and submits the form with the quit claim deed.

The deed must be recorded with the Bureau of Conveyances to put the world on notice of the change in timeshare ownership. Maintaining an accurate, timely and permanent record system of timeshare ownership is the responsibility of the State of Hawaii Bureau of Conveyances.  A properly prepared quit claim deed must have the legal description, interval control number and reference to a prior recorded document.

Once the quit claim deed has been recorded it is returned by the Bureau with proof of recording. This recorded deed must be provided to the resort management company to update their records for reservations, accounting and billing.

Posted on Jan 18, 2013

Divorce

A timeshare in Hawaii is awarded to one spouse pursuant to a court order from either a litigated judgment or marital settlement agreement in California. Transfer of ownership is not complete until actual title of ownership is filed and recorded with the Bureau of Conveyances. Transfer is done by quit claim deed.

Transfer of ownership is by quit claim deed from one ex-spouse to another is also known as an inter-spousal deed. To make the transfer a court order is needed in the form of a judgment. Often the transferring spouse is not comfortable signing off ownership until the judgment is obtained or the quit claim is omitted from the judgment package. If the transfer deed has not been prepared and signed it can be done any time after entry of judgment using the services at DeedAndRecord.com.

Posted on Nov 11, 2012

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