What % of our home proceeds do you think my wife will get?

dday_throwaway3 · 2021-04-13T15:18:53+00:00

The downpayment on the home is a pre-marital (separate) asset. That is out of scope of the divorce. The equity gain/loss since marriage is in scope for divorce. The same applies to any investment/retirement accounts you had prior to marriage.

Add up all marital assets and liabilities, then divide by two. You each get half. Divorce is the negotiation of how that's split -- who keeps the home vs. getting paid the equity.

streetsmartwallaby · 2021-04-14T00:44:39+00:00

So in other words if the house was worth 100k when you got married and is now worth 140k and the judge decides she gets 50% you’d owe her 20k for the house (50% of the 40k increase in value).

SzDiverge · 2021-04-16T20:24:50+00:00

Since you bought the home only a year prior to marriage, the numbers may not be too dramatic.

This is how the math works though (consult a lawyer in your area to be sure!).

You buy a house for 100k. You put 10% down - 10k. You get married.. live happily ever after for a week or three then decide to divorce. Sorry mate!

Your house has increased in value from 100k to 150k! These crazy pandemic times has helped your home value skyrocket! Good for you!

Because you put 10% down on the home before marriage, you are entitled to 10% of the increase in value BEFORE splitting the remaining proceeds after sale.

So.. Home increased in value from 100k to 150k and sold = 50k increase. You are entitled to 10% of the 50k increase or 5k

Your original down payment is 10k - you are entitled to this also

So off the top, you get 10k + 5k = 15k.

You now split 50k - 15k or 35k. Each getting 17.5k.

Your total take away from the home is 15k + 17.5k = 32.5k
She gets 17.5k.

It's called a Schmitz calculation - there are a couple different ways to do it. This is how it was done in my divorce. My STBX grew 12.5k from a townhouse she bought before we married into 45k 3 houses later.

Title	What % of our home proceeds do you think my wife will get?
Author	maybebionic
Upvotes	0
Comments	7
Date	April 13, 2021 3:08 PM UTC (5 years ago)
Subreddit	Posted in /r/Divorce_Men
Original Link	https://old.reddit.com/r/Divorce_Men/comments/mq46fb/what_of_our_home_proceeds_do_you_think_my_wife/
Archive Link	https://theredarchive.com/r/Divorce_Men/what-of-our-home-proceeds-do-you-think-my-wife.1188575 https://theredarchive.com/post/1188575

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