Can anyone work this out?
The mortgage is in my name only so it makes my NFP negative!
Assume the following scenario:
Value of the house at valuation date $360,000
Value of the house today $340,000
Mortgage 1 (my name) $200,000
Credit Cards (my name) 60,000
TOTAL Debt(my name) $260,000
Credit cards (her name) $20,000
I calculate her NFP as $180,000 -20,000 = $160,000
I calculate my NFP as $180,000-260,000 = -($80,000)
Apparently my NFP will be made $0 (even tho it is a neg amount)!
So the equalization payment would be:
$160,000 - 0 = $160,000/2 = $80,000.
She would have to give me $80,000 from her proceeds of the house sale.
So she ends up with :
$170,000- $80,000(to me) = $90,000.
I end up with:
170,000(from house sale) + $80,000(from her) - $260,000 = $10,000.
Is this correct? Doesn't seem fair but from what I read this is how it is!!
Can someone shed some light on this please? Thanks.
The mortgage is in my name only so it makes my NFP negative!
Assume the following scenario:
Value of the house at valuation date $360,000
Value of the house today $340,000
Mortgage 1 (my name) $200,000
Credit Cards (my name) 60,000
TOTAL Debt(my name) $260,000
Credit cards (her name) $20,000
I calculate her NFP as $180,000 -20,000 = $160,000
I calculate my NFP as $180,000-260,000 = -($80,000)
Apparently my NFP will be made $0 (even tho it is a neg amount)!
So the equalization payment would be:
$160,000 - 0 = $160,000/2 = $80,000.
She would have to give me $80,000 from her proceeds of the house sale.
So she ends up with :
$170,000- $80,000(to me) = $90,000.
I end up with:
170,000(from house sale) + $80,000(from her) - $260,000 = $10,000.
Is this correct? Doesn't seem fair but from what I read this is how it is!!
Can someone shed some light on this please? Thanks.
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