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  • Wife buying me out

    Hello, I'm new.

    I'll get right to the point

    My wife is buying me out of the martial home. What is the amount that she needs to pay? eg. half of current market value?

    Any help is appreciated

  • #2
    Half of the equity (market value less mortgage debt) is what she owes you.

    But you have to equalize all the rest of the familiy property as well.

    Comment


    • #3
      Originally posted by dadtotheend
      Half of the equity (market value less mortgage debt) is what she owes you.

      But you have to equalize all the rest of the familiy property as well.
      Ok, not toally understanding that sorry. So half market value I get, but less mortgage debt? So, half of what we've paid into it so far?

      Comment


      • #4
        If you are talking simply about figuring out the buy out here you go, if you disagree one ot the other may hire an evaluator to establish the current market value. Normally this is not a realestate agent although an agent in some instances may also be designated an evaluator. Generally taking the opinion of an agent would not suffice (unless you both agree of course).

        Current value of home: Ex: 200,000.00
        Current mortgage debt: Ex: 100,000.00
        Balance: 100,000.00
        Divided by two: 50,000.00 each.

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        • #5
          To answer you question in another way, do you owe anything towards the house, do you have a mortgage? If not yes half the market value. Of course you will want that numbe higher and she lower. So how do figure out market value. It's up to both of you but in the end an evaluator can make the final decision if you do not agree.

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          • #6
            Yes, currently have a mortgage.

            $130, 000 purchase price
            $20,000 paid

            Comment


            • #7
              Buyout option

              Maybe you could consider what is known as a "shotgun" arrangement.

              One party sets the price, the other then has the choice to either accept that figure to buy them out or use that figure to buy out the other.

              Tends to keep the estimates realistic.

              Comment


              • #8
                Originally posted by ginsoo2000
                $130, 000 purchase price
                $20,000 paid
                The purchase price probably isn't relevant because it's probably worth more than that, given today's rising real estate markets.

                It appears you owe $110,000 on your mortgage. Say your house is worth $150,000 today. You then have $40,000 in equity, which is to be split between the two of you.

                But you also have to consider the growth (or decline) in your other net family property, which itself is a tidy little concept to get your head around. Do a google search on net family property and put your reading glasses on!

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                • #9
                  Thanks for the info

                  Comment


                  • #10
                    ginsoo2000 there has alos been the overlook of marital debt....you have to deduct that also......any vehicles you owe on....if you have two vehicles and one is valued at 30k and the other at 4k there is also a balance owing from that.....credit cards, line of credit, all creditors have to be included......if you have investments theya re also taken into account......its not that cut & dry about the house.....the house is marital property however you also have marital liabilities to consider.......if the liabilities outweigh the house value it may not be worth it......make sure you know exactly how much is owing in marital debt and dont take someones word for it.......get statements from creditors, banks and vehicle lenders.......you need it all.......you can have an evaluation done by 4 different real estate agents and tkae the better of the four.......

                    Comment


                    • #11
                      Originally posted by littleman
                      ginsoo2000 there has alos been the overlook of marital debt....you have to deduct that also......any vehicles you owe on....if you have two vehicles and one is valued at 30k and the other at 4k there is also a balance owing from that.....credit cards, line of credit, all creditors have to be included......if you have investments theya re also taken into account......its not that cut & dry about the house.....the house is marital property however you also have marital liabilities to consider.......if the liabilities outweigh the house value it may not be worth it......make sure you know exactly how much is owing in marital debt and dont take someones word for it.......get statements from creditors, banks and vehicle lenders.......you need it all.......you can have an evaluation done by 4 different real estate agents and tkae the better of the four.......

                      done all that already, but thank you.

                      Comment


                      • #12
                        Since you have done everything else except the valuation of hose, my own personal opinion, do not use a realestate agent for the value. use a an evaluator. Of course you could always end up in a biiding war either way if one of you disagree's but the court will view an evaluator's opinion over an agent any day.

                        Good luck

                        P.S. Of course if you could reach an amicle agreement that would always be best, but of course the one being paid out will often seek more than the "real" value.

                        Comment


                        • #13
                          buy out timing

                          Given all this, is the absent spouse due half the present value or half the value at the time they left

                          Comment

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