All things equal you and your husband will split the equity.
Based on your numbers:
Appraised value= 166K
Less remaining loan=-62.8K
Leaves 104K
Divide by 2 = 52K
You will have to give him 52K if you want to keep the house.
If that is true, then why does he get more than he and I have paid into the house? I still have to pay the house off after the divorce but together we have only paid $20,000 into the house loan. It just seems that I would be paying him for something he has not put in.
Rhonda
Yes I understand, but the house is a marital asset. You acquired the house during your marriage. The house has value and that value has appreciated during the marriage.
Even if you owned this house outright before you were married, he would still be entitled to half of the increase in value during the marriage.
Sorry that is just the way NC law is.
I understand. Thank you for your help.
Rhonda
Also don’t forget that with half the assets he also is entitled to recieve half the debt from the marriage. Depending on your situation you might be able to negotiate like he keeps his retirement and you keep the equity in the house. That is what my ex and I did so I didn’t have to buy him out.
4thme is correct. Nothing like having to pay on a mortgage on a house you don’t live in to make someone see the light! Also, if he won’t or can’t do that, for every month that goes by and you pay the full mortgage it reduces his equity by that amount.
But it looks like the equity would go up. If I pay the mortgage the loan amount goes down and the apprasial stays the same, that provides more equity doesn’t it?
Rhonda
That is correct. Equity that YOU ALONE have built. That is if he has moved out i.e. separated.
Generally you would pay him half the equity that existed on the date of separation which is the value of the house minus the balance on the mortgage.
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My husband of 22 years and I are separated. We purchased a house and some land 17 years ago. The original amount borrowed in 1991 was $68,000. In 2002, we refinanced the house and land for $82,000. Our balance now is $62,800. I just had the land and house appraised which came to $166,000. I plan on keeping the house and land. My question, is the house and land split based on the appraisal value or the difference in what we borrowed versus what we owe? Some people tell me, I will have to give him $83,000 which is ? of the appraisal, others tell me I only have to pay the difference in what we borrowed and what we owe. Thanks so much!