Mortgage Divorce Buyout: Working out a Buyout Agreement

When dealing with a divorce buyout, the process can sometimes be very challenging. In order to come up with an agreement that works for both parties, you are going to have to look at several factors. Here are a few things to consider about working out a buyout agreement with your spouse.

Legal Help

During this process, it would be to your advantage to hire a lawyer. They are going to be able to help you with the negotiation process and make sure that you get a fair settlement.

Determining Buyout Amount

In order to determine the buyout amount, you are going to need to know the value of the home. This can be determined through a real estate appraisal. You will then need to subtract the mortgage balance from this value. Divide that number by 2 in order to determine how much equity belongs to each individual.

If you plan on splitting the equity equally, this will tell you how much the buyout amount should be. However, if you are factoring in other things, it gets a bit more complicated. For example, if you are including other assets into the buyout amount, one individual might get more of the equity than the other.

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