Home Equity Division Calculator
Calculate fair division of home equity in divorce
Property Details
Current Property Value
Separate Property Claims
Pre-marital funds, inheritance, gifts used for home
Division Settings
Spouse 2 receives the remainder
Selling Costs (if applicable)
Buyout Financing
Division Analysis
Enter property details and click "Calculate"
Get comprehensive home equity division analysis
When to Use Home Equity Division Calculator
Divorce Settlement
Calculate fair division of home equity during divorce negotiations and settlement discussions
Buyout Planning
Determine how much you need to pay or receive if one spouse keeps the family home
Mediation Preparation
Come prepared to mediation with realistic numbers and multiple scenario comparisons
Sell vs Keep Decision
Compare selling the home versus buyout to make the best financial decision
Refinance Analysis
Calculate new mortgage payments if refinancing to buy out your spouse
Attorney Consultation
Prepare for legal consultations with preliminary calculations and understand property division
Frequently Asked Questions
How is home equity divided in divorce?
Home equity is typically divided based on state law (community property or equitable distribution). The marital equity equals current home value minus mortgage balance minus any separate property contributions. This marital equity is then divided between spouses, usually 50/50 in community property states or equitably in other states.
What is a home buyout in divorce?
A home buyout occurs when one spouse keeps the house and pays the other spouse their share of the equity. The buying spouse typically refinances the mortgage in their name only and pays the other spouse half of the marital equity, either in cash or by trading other assets.
How do you calculate marital vs separate property in a home?
Separate property includes: down payment from pre-marital funds, equity at time of marriage, gifts or inheritance used for the home, and appreciation of separate property. Marital property includes: mortgage payments during marriage, improvements paid with marital funds, and appreciation during marriage.
What costs are deducted when selling a home in divorce?
Typical selling costs include: real estate agent commissions (5-6%), closing costs (1-3%), repairs and staging, mortgage payoff, any liens or judgments, transfer taxes, and prorated property taxes. These costs reduce the net proceeds available for division.
Should we sell the house or do a buyout?
Consider selling if: neither spouse can afford the home alone, you need cash for fresh starts, or the market is favorable. Consider a buyout if: children need stability, one spouse has strong attachment, refinancing is feasible, or selling costs would be high.
How does refinancing work in a divorce buyout?
The spouse keeping the home refinances the existing mortgage into their name only, removing the other spouse from liability. The new loan amount typically covers the existing mortgage balance plus the buyout amount owed to the departing spouse.
What if we have negative equity (underwater mortgage)?
If the home is worth less than the mortgage (negative equity), options include: short sale with lender approval, one spouse assumes the debt, both remain on mortgage until equity builds, or deed in lieu of foreclosure. The negative equity may be considered marital debt to be divided.
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