My husband and I own a home together. Neither of us have enough cash to buy the other out. So, in this case, when the buying spouse refinances, do they also have to apply for another loan (for the portion of their spouse’s equity)? A cash buyout is not the only option, correct?
When one spouse refinances, it is typical for him/her to refinance for more than needed in order to have the funds to buyout the other spouse from the marital residence. This could be done in one loan and two would not be needed.
A cash buyout is not the only way to equitable divide the marital estate. Assets of the same value could be used instead of cash for example.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
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