The marital home is one of the most valuable assets that most New Jersey couples own. When a couple decides to divorce, calculating a house buyout is often a necessary step. This will allow one spouse to buy the other spouse’s share of the home in order to retain the residence for themselves and any children.
If the couple has a mortgage on their home, the first step they will need to take is determining how much equity they have in the home. This is an easy calculation. If the home is worth $500,000 and the mortgage is $250,000, this means that each spouse will have $125,000 of equity in it.
The fair market value of the home also has to be determined. It is common for each spouse to hire a certified appraiser to value the home. If there is a large difference in the numbers presented by each appraiser, a third appraiser may be hired. Things that the appraisers take into consideration when determining the value of the home include special amenities and the condition of the home.
Something else that will need to be factored into a house buyout during a divorce is major repairs that need to be done. It may be necessary for a home inspector to examine the home and look for termite damage, plumbing problems, roof damage and other issues that would affect major systems in the home.
When a person is considering divorce, they usually have questions about how the divorce will impact their financial future. A person may decide to speak with a divorce attorney in order to learn about laws pertaining to joint assets and joint debt during a divorce. The attorney may be able to provide assistance with drawing up divorce papers and filing them.
