I have written numerous articles about the benefit of planning for the succession of ownership of your family cottage in order to avoid non-family members from obtaining ownership rights to use the family cottage in divorce proceedings.

Well, in spite of recommending that type of planning, I nevertheless have clients that, for one reason or another, resist doing the planning or fail to plan, and then call me later and report that the very thing they thought would never happen in their family actually came true!

Upon assisting them in transferring title to the property, I advised them that they really should consider drafting a succession plan to manage their sons’ common ownership that would result from the parents transferring ownership.

Mr. and Mrs. Smith’s response was that their adult sons “get along great” and should not have a problem managing their new common ownership of the property as well as any issues that typically are involved with that process. I also indicated that succession planning does not only involve developing a plan to manage the property, but it also protects the property from potential third-party creditors and divorcing spouses.

Now speed forward to the current date. I received a call from Mr. and Mrs. Smith who reported a rather interesting story regarding their now ex-daughter-in-law who received a share of their son’s common ownership in the family cottage in their divorce judgment.

Further, based on the fact that there were no usage provisions in any succession plan regarding who is entitled to use the property and when, Mr. and Mrs. Smith’s ex-daughter-in-law proceeded to show up most weekends to use the family cottage with her new boyfriend.

Contrary to what you may believe, I don’t make this stuff up. A failure to plan can result in the most unthinkable circumstances coming true. Also, as I have stated before, planning to plan is also not a plan.