Divorce and the house


#1

My husband’s name is on the mortgage but we are both on the deed. I moved out and moved to live with my Boyfriend. We originally argreed to sell the house and split the “net profit” which is in our separation agreement, but after mutiple drops in the price of the house and still no one even looking at the house, I agreed to let him refinance and keep the house. How should the money split go? He thinks that we should split what is left over after the refinance and the current mortgage is paid off which gives me less than half of the equity. His mother also gave him a gift of $150,000 to pay toward the home when we bought it, and there is proof of that GIFT by way of letter and the closing papers on the house. Does that effect the amount I get??


#2

IF he refinances the home and “buys you out” you should receive one half of the equity in the home. Since your separation agreement does not provide for such a disposition, your husband will likely be treated (if the issue were before the court) as any other buyer, and he would “buy” the house at the current price, of which you would receive half of the net proceeds. For instance if the house is currently listed for 150k and the mortgage balance owed is 50k, he would buy the house from you for 50k.
The home is marital in nature according to the agreement, I would not give him credit for the gift of the down payment at this juncture.