Anonymous wrote:The person who keeps the house will have to refinance into their own name. I don’t think it’s should be $150k each. You need to make sure you are taking out all selling costs (realtor fees, transaction fees, etc) and then divide in half.

These fees typically do not go inti it. I just went through this. We each got an independent appraisal. Averaged them out. Divided the equity.

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.

Anonymous wrote:It is usually a one-time transaction and I can’t imagine why he’d agree to a payment plan, firstly because he needs it as a down payment on his own place, and secondly because he does not want to be tied to you financially after the divorce is final. (For example, if you decided oh so sorry I can’t make the payment this month, he does not want the hassle of taking you to court over it.)

This. If it would have to be a payment plan, then better to sell the house and each collect your share. But if there are other assets, eg retirement, then you can consider giving up your portion of that in exchange for more equity.

Honestly, I think that the court will rubber stamp whatever you and your DH can negotiate about house equity, and in general about marital property split.

Courts do not usually step into marital property splits negotiated by agreement between parties unless there is a flagrant concern that one side is unfairly benefitting (for example, if one side is totally unrepresented by counsel).

Talk with your lawyer, who should have experience, hopefully, with lots of different settlements, negotiating tactics, financial solutions, etc. He/she may be able to look at the property and suggest a way to balance out the equities taking into account present v. future value, what you will contractually be able to accomplish (lawyer will be able to estimate how much you can pull out of refi, etc.) You may be able to trade off by splitting retirement equity differently, or giving him another asset (car), whatever....

I think when you refinance you can borrow $$ to buy him out if you don't have that cash available. So if the buyout is $150k and you have $100k left on the loan, you would refinance for a $250k loan and then pay him his portion.

It is usually a one-time transaction and I can’t imagine why he’d agree to a payment plan, firstly because he needs it as a down payment on his own place, and secondly because he does not want to be tied to you financially after the divorce is final. (For example, if you decided oh so sorry I can’t make the payment this month, he does not want the hassle of taking you to court over it.)

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.

Anonymous wrote:Equity has nothing to do with custody. It really depends on your divorce settlement. Are you sure that router parent will not fight you for 1/2 time? The person not keeping the house should pay 1/2 the equity to the other person and remove that person from the title and mortgage.

Quite certain he will not push for more than 50% time. Frankly I’m hoping he wants 50% and not less.

As far as the equity payment, let’s say after refi I’d owe 100k to get out of the house. What if after splitting liquid assets I don’t have that in cash to pay? Can a divorce settlement agreement stipulate that can be paid monthly (if both parties agree), for example?

To PP — no prenup.

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.

The equity should reflect that, if you get an appraisal.

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 depends on the state. If you can prove that you put money into the home prior to marriage and can also prove it was directly your funds, you may be able to claim more equity.

Anonymous wrote:Equity has nothing to do with custody. It really depends on your divorce settlement. Are you sure that router parent will not fight you for 1/2 time? The person not keeping the house should pay 1/2 the equity to the other person and remove that person from the title and mortgage.

+1. No prenup as to the house, correct?

Equity has nothing to do with custody. It really depends on your divorce settlement. Are you sure that router parent will not fight you for 1/2 time? The person not keeping the house should pay 1/2 the equity to the other person and remove that person from the title and mortgage.

The person who keeps the house will have to refinance into their own name. I don’t think it’s should be $150k each. You need to make sure you are taking out all selling costs (realtor fees, transaction fees, etc) and then divide in half.

How does the marital home typically get dealt with? I know there may be different ways but I guess I’m looking for BTDT.

Let’s say we have about 300k equity in our home and we divorce but one wants to keep the house. So does that person not moving out give 150k of the equity amount to the spouse who is moving out? Is it usually a one-time transaction or is it broken down into payments over time? What if the spouse who is moving out is the primary custodial parent ie would have the kids M-F and every other weekend, does that impact the split of the home equity?