During negotiations for the Equitable Distribution, it was decided that the marital residence would be put on the market and the proceeds split equally once it is sold. There was no expectation that either of us would be in a position to buy the other out, and the debt that the home secures was applied equally to both parties.
Now, there is a possibility that one party may be able to buy out the other. How would the buy out value be determined, since we would be making an equitable value determination after the equitable distribution was already agreed? Do we value the home in a vaccuum?
I am very confused about buyout in general. Is there a basic formula? And then in this case would it apply? I assume that the buyout amount would be half of the equity based on an appraisal…but if that is the case, then the person that pays half equity then also absorbs all of the debt…so I can’t be right…So confused…
Thanks for the advice!!