My husband and I are separated and trying to divide property out of court. He is keeping the home and the mortgage is only in his name; I’m on the deed. He has held off foreclosure during our separation by re-modifying, but now carries a substantial amount of negative equity on the home. I have student loan debt and a car loan (loan value minus the car value) that essentially equals the amount of negative equity he has in the home. I’ve been reading about this online and where it makes sense that this might be an equal division of debt on paper, he is still getting a physical house and I’m getting a used car and debt. It doesn’t seem equal practically. Is this how it is divided in NC? Does NC “zero-out” the negative equity as I’m reading some states might?
If he owes more on the house than it is worth, it should be valued by appraisal and the debt should be included in the division of the marital estate, thereby giving the house a negative overall value.