Many divorcing couples often face the issues of dividing the home they purchased during their marriage, as the family home is frequently the largest asset of the marriage. Many parties decide to sell the home and divide the equity of the proceeds due to the economic constraints or the emotional ties associated with the house.
If one party is interested in buying the home from the other party, the two will need to negotiate the appropriate sale price. Where one party wishes to buy out the other, the first step is to calculate the equity by getting the currently appraised value of the house by a qualified residential real estate appraiser, and subtracting the mortgage and any other liens on it. Be sure that the appraisal considers any additions or enhancements made to the home or property that will increase the value of the home.
If the parties agree that the home should be sold, the first step is to find a realtor that both sides are comfortable with. The realtor will provide both parties with market data so that the parties can agree on an asking price and the sales price will determine the value. The parties will need to figure out how the equity will split which will depend on several factors such as the state law, and on the source of the money that was used to purchase the home. The two sides would have to negotiate a fair split of commissions, taxes during the divorce, and other costs associated with the sale.
The divorce attorneys at The Zhou Law Group, APC can help you figure out the division of home equity and any other concerns during the divorce proceedings. To arrange a free 1/2 hour initial consultation, call (408)289-9688, or contact us online at www.sanjoseattorneys.com.
