Can You Afford a Mortgage Divorce Buyout?

A mortgage divorce buyout is sometimes an essential part of the process of two spouses separating. If you are faced with the possibility of a divorce by out, you need to determine whether you can afford it or not. Here are the basics of how to determine how much a mortgage divorce buyout is going to cost. 

Determining Value

First of all, you need to determine how much this buyout is going to cost you. In order to do this, you are going to have to determine an accurate value for the property. In most cases, you are going to want to hire a certified real estate appraiser for this part of the job. They can look at your property and give you a detailed report about what it is worth in today's market.

Calculating Buyout

After you know the approximate value of the house, you can calculate how much the buyout is going to cost. Start out by subtracting the existing mortgage balance from the value of the house. The amount that you are left with is the equity in the house. Take the equity of the property and divide it by two in order to determine how much you will have to pay your spouse.

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