Buying out stbx for marital home


#1

My stbx and I are both on the deed for what used to be the marital home. The mortgage is in my name only. We are in listing the home for sale later today. If the home does not sell, we are reluctant to lower the price since that would put us in a negative equity situation by the time you factor in realtor fees and closing costs.

Part of the ED in our (unsigned) agreement provides a certain amount of my 401k to him which would be executed through a QDRO. Rather than dropping the price and taking a loss, could we use additional $ in my 401k to buy him out of his share of the home? In this scenario, how is the value of the home determined? Do you just get an appraisal to determine the value or do you go by what your realtor thinks it is worth? And then I assume the formula would be (value - debt)/2 for what I would add on to the QDRO amount?

Thanks!


#2

Your unsigned agreement is not valid or enforceable, you may negotiate for any property distribution you like, including awarding him a portion of the 401(k) in lieu of his share of the equity in the home. The home value, if not agreed upon, is usually the appraised value, less the loan balance as existing on the date of separation.