What Is a Fractional Timeshare?

Fractional timeshare ownership guarantees you the use of a timeshare property or resort during several weeks of the year -- that is, for a fraction of the year. Typically, fractional interests range from a minimum of 2 to 13 or more weeks per year, far more than the one week per year common in most timeshare plans. Many owners choose to purchase a fractional timeshare as opposed to a second or vacation home. With fractional ownership, you need only pay for the time you actually plan to be in residence, a considerable savings over purchasing a second home, which generally goes unused for a considerable portion of the year. Whether you're in residence or not, you pay to maintain, heat, insure and provide utility services for a second home. With a second home, you also pay for mortgage and taxes for a full year. With a fractional interest in a timeshare, you share all those expenses with other owners, prorated to reflect the actual fraction of the year the timeshare is available for your exclusive use. Fractional ownership originated in the U.S. in 1994 with groups of family members or close friends pooling their resources to buy vacation properties. The average fractional owners are married empty-nesters in their mid-50s with an average household income of $500,000. Generally, ownership is divided into fourths, eighths or 13ths with each owner enjoying an equal number of weeks at the property. With fewer restrictions than most timeshares, fractionals can be rented out, shared with family and friends, sold or left to your heir in your will. Like timeshares, fractionals can be exchanged, allowing owners to vacation in other locales. Fractional ownership offers vacationers some distinct advantages, including the opportunity to vacation longer and more often and the opportunity to vacation in multiple seasons. Many fractional owners enjoy the seasonal delights of both summer and winter at their timeshare.