Divorce Buyout Calculator

Divorce Buyout Calculator is used to calculate the equity you and your spouse get from your house during a divorce. The buyout mortgage calculator calculates the money you will need to buyout the property from your spouse.

To buyout the house, you will need to pay your spouse .

How is home equity calculated in a divorce?

The home equity calculated in a divorce is based on the home value, mortgage balance, and the percentage ownership between the husband and wife. Your Share = S/100 * (H - M), where H = Home Value M = Mortgage balance S = Your share of the house For example, if your house is worth $700,000 with a mortgage balance of $300,000, and you have a 50% share in the house, here's how you would calculate how much equity you have in the house during a divorce. Your Share = 50/100 * (700,000 - 300,000) = 0.5 * (400,000) = $200,000 Therefore, your share in the house would be $200,000.

How to split a house with a mortgage in a divorce?

There are a few options for couples to divide their mortgage during a divorce, sell the house, refinance under one person's name, or pay their spouse his/her share of the equity.

Sell The House

Many spouses choose to sell the house and divide the profit. This is a simple solution, but you should be aware of the cost of selling the house. There are realtor commissions, property transfer tax, and closing costs. Check out the net proceeds calculator to see how much you can keep by selling your house.

Refinance The Mortgage

You can choose to refinance the mortgage into a new mortgage under only one person's name. The other person will no longer be responsible for the mortgage. The name of the partner should also be removed from the title. The party who keeps the house will pay the other half for his/her share of the equity. If they don't have the cash to do so, they can apply for a cash-out refinance to pay the spouse who is parting from the house.

Buyout Your Partner's Equity

If you have the cash to pay for your partner's equity in the house, you can choose to buy their share by removing his/her name from the mortgage and title. The total equity is calculated by subtracting the mortgage from the home value, and assuming your spouse has 50% equity in the house, you would pay him/her 50% of the total equity of the house.