Equitable Distribution of Assets


#1

The goal of ED is it make sure the assets are allocated equally, for example if there is $30,000 in equity in the house, each party would be entitled to half. However, if the person remaining in the home is paying more debt, then that may reduce the amount of equity they are entitled to. Generally, if you do not have cash on hand and are trying to buy one party out, you would refinance and pull the equity out of the home. Retirement accounts are generally divided equally between the parties, remember when dividing retirement accounts that because they have tax consequences, they do not have the same value as cash.

Helena M. Nevicosi
Attorney with Rosen Law Firm

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Raleigh, North Carolina 27607
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#2

I’m trying to make sure I understand how ED works.

I have a retirement account, and a 403b, and we have a house and that’s pretty much it for Equity. So I put all three of those in the pot. STBX has nothing other than the house as he has chosen not to work consistently…but I digress! Anyway, so we add those things up and let’s say it equals $50,000. Now, do we subtract all of OUR/his/mine debt (like my car loan, any credit cards we individually, etc.) from that and THEN divide it in half? If our debt all added up together equals $30,000 then there’s $20,000 in equity. Is that right? So we’d each be entitled to $10,000? What if neither of us has 10 Grand laying around and I want to keep the house? ARGH! What a mess. I think Tyler Perry has it right with the title of his new movie…Why Did I Get Married!!!