Kids are off in college. About to file and wonder if I'll have to fight to have the current home sold or have her pay out equity if she wants to keep it.

Gattsama · 2022-12-12T08:33:47+00:00

So the kids aged out, which is good. That leaves you with division of assets/debts + spousal support (if she qualifies). ALL communal assets and debts are added; then divided by two. So the equity in the hose AND the mortgage debt all to be split 50/50. Real world the house has 2 issues: the title and the mortgage. The title can be changed at the court house for a fee. The mortgage can not be modified and no names can be added/removed without a NEW loan. IF both names are not on the loan, not a problem.

There are two loan options: refinance - new loan, you have to apply and be approved, new interest rate and the clock sets back at zero, closing costs can be including in the loan. Assumption loan - new loan, you have to apply and be approved, you keep the old interest rate and time paid because you assume the old loan, closing costs must be paid separately and can not be added to the loan.

What often happens is the net package of assets/debts/support gets balanced out no problem. BUT the mortgage can be a sticking point. If you can't work it out, then the house will be sold and the equity split 50/50.

zippyweinstein · 2022-12-12T09:26:29+00:00

You can’t force a sale if she’s able to pay off your interest and keep paying the mortgage. She should have to get your name off the mortgage at some point but it’s not always required.

toooldforthisnonsens · 2022-12-12T07:31:28+00:00

The way it will work is that the values of everything are entered into a "pool" of communal assets and debts. Then each party is "paid" out of that pool.

She'll have to buy you out of the house is she wants to keep it.

My response is "in general" and may not be how your state operates.

If you want to sell and she wants to keep it, be prepared for a fight over the value of the home. Even with an appraisal, from an appraiser my ex picked, I still have to fight to get the value correct in the divorce.

dday_throwaway3 · 2022-12-12T08:58:42+00:00

Add up all marital assets and liabilities, then divide by two. You each get half. If you can't agree who keeps the house and who pays out an equity share to the other, then the judge will order it sold and the proceeds split.

gnackered · 2022-12-12T13:16:56+00:00

Let her have it as long as you get the equity out. Don't take dollars in a retirement plan unless there is an adjustment for future taxes. E.g. Your buyout is $500K, don't take $500K in a traditional 401(k) since you will owe the IRS their share, ask for $600K, or Roth assets.

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