House Questions


#1

we are trying to determine what will be fair and equitable with regards to the marital home and are not legally seperated yet:

If we split the house 50/50 does that mean I am getting half of the equity in it of half of the home’s current value? In this economy our home’s value has depreciated would I essentially be receiving half of the debt? How does it work with Home equity lines of credit on the property?


#2

The date of valuation is the date of separation value. You and your spouse are each entitled to receive 50% of the equity in the home on the date you separate. Debts are divided as well as assets which is why you are entitled to half of the equity and not half of the value.


#3

What if the house value has dropped since I left and he still wants buy me out? Will I be due the new reduced equity or 1/2 the equity based on our separation date?


#4

Since the depreciation on the house is passive (due to market forces beyond your control) the passive loss will be accounted for in the distribution. The date of separation value will be used for purposes of valuation, however it will include the passive decrease in value up to the date of distribution.