Marital Home equity

[Anonymous]

Home equity is part of total assets. The goal is to divide total assets equally. That could mean splitting each asset down the middle, or there could be offsets - one person keeps more of the home equity while the other person keeps more of the long-term investment accounts, for instance.

Assuming the home equity is the biggest item and should be split 50/50, there are a couple of ways to do it. If one party stays in the house, they must refinance in their own name, and the remaining spouse buys out the departing souse (paying 50% of the equity in cash or equivalent value of other assets). If neither spouse can afford the house on their own, the house gets sold, and proceeds are split 50/50.

[Anonymous]

Anonymous wrote:Thank you. I do not think he would want to sell the house, he loves the house. I realize that could change if it didn’t make sense financially but I am trying to get a better understanding for how the assets split/equity would work when one partner stays in the house.

Loan PP — that makes sense.

Actually now that I’m replying I think I’m confused about who pays what — if he stays in the house and lives there and I move out, he pays me for/buys me out of my equity share right? From my OP I was thinking that the moving-out partner paid the 50% share of equity in the house.

Clearly I need to ask an attorney but I was trying to work some stuff out in my head prior.

If you move out and he wants to keep the house, you get it appraised and if there is any equity, you split that and then he buys you out of your share of the house. He can give you more liquid assets or take out a mortgage.

[Anonymous]

Anonymous wrote:Home equity is part of total assets. The goal is to divide total assets equally. That could mean splitting each asset down the middle, or there could be offsets - one person keeps more of the home equity while the other person keeps more of the long-term investment accounts, for instance.

Assuming the home equity is the biggest item and should be split 50/50, there are a couple of ways to do it. If one party stays in the house, they must refinance in their own name, and the remaining spouse buys out the departing souse (paying 50% of the equity in cash or equivalent value of other assets). If neither spouse can afford the house on their own, the house gets sold, and proceeds are split 50/50.

Very helpful, thank you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Thank you. I do not think he would want to sell the house, he loves the house. I realize that could change if it didn’t make sense financially but I am trying to get a better understanding for how the assets split/equity would work when one partner stays in the house.

Loan PP — that makes sense.

Actually now that I’m replying I think I’m confused about who pays what — if he stays in the house and lives there and I move out, he pays me for/buys me out of my equity share right? From my OP I was thinking that the moving-out partner paid the 50% share of equity in the house.

Clearly I need to ask an attorney but I was trying to work some stuff out in my head prior.

If you move out and he wants to keep the house, you get it appraised and if there is any equity, you split that and then he buys you out of your share of the house. He can give you more liquid assets or take out a mortgage.

Thank you!

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, don't forget the rise in the home value. You should be thinking of getting some portion of that as well in addition to the home equity.

It hasn’t risen much, maybe 50k, and I am factoring that into my estimate of how much equity is in the house.

Have you not been in the house long or live outside of the DMV? $50k seems low. Unless of course you haven’t been in it long.

We bought in 2010 and our house has risen $500k in value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, don't forget the rise in the home value. You should be thinking of getting some portion of that as well in addition to the home equity.

It hasn’t risen much, maybe 50k, and I am factoring that into my estimate of how much equity is in the house.

Have you not been in the house long or live outside of the DMV? $50k seems low. Unless of course you haven’t been in it long.

We bought in 2010 and our house has risen $500k in value.

Not everyone lives in a multi-million dollar house that rises 500k in ten years. You are an idiot with this comment.

[Anonymous]

Anonymous wrote:OP, don't forget the rise in the home value. You should be thinking of getting some portion of that as well in addition to the home equity.

Equity, be definition, is the difference between the value and the debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, don't forget the rise in the home value. You should be thinking of getting some portion of that as well in addition to the home equity.

It hasn’t risen much, maybe 50k, and I am factoring that into my estimate of how much equity is in the house.

Have you not been in the house long or live outside of the DMV? $50k seems low. Unless of course you haven’t been in it long.

We bought in 2010 and our house has risen $500k in value.

We are not in the DMV any longer, live in a lower COL area where homes do not appreciate at that rate.