Can one get 1/2 of the home equity as a buyout?


#1

Here is the scenario…Separation between parties, amicable, where one will move out of the house and get 1/2 of home equity plus some cash…
Is that feasible? I am sure that title has to be changed too.


#2

Yes, you and your spouse are free to agree to whatever terms you please. Just be sure to outline your agreement in a properly drafted separation agreement which is signed an notarized by both of you.
The spouse who stays in the house should refinance the loan into his or her own name, and the spouse who is leaving should sign over his or her rights to the home using a Special Warranty Deed at the time the payout is received.