Hi all, first time on personalfinance. Just hoping someone can give me an idea of a fair way of doing what we want since it's the last piece of our separation agreement.
Basically my ex and I have separated but have been co habitating for a while since neither could afford to own and did not want to rent. Where I live rent is higher than mortgage payments so we waited.
Basically, our house has been appraised at 960k, and we have 400k outstanding.
That means if we sold today, we would have 280k each.
But I have agreed that I owe her 45k as equalization at date of seperation, and I have agreed to take myself off the home and let her and the kids stay here and I will get paid when they sell.
So I am thinking we do this:
Value (a) minus mortgage (b) / 2 - 45k= $235k
235k / 960k = 24.47%
Therefore I maintain 24.47% ownership of the home. So if she sells it for 1.2 million in this market, I get 24.47% of the proceeds.
But I want to make sure it is fair to her as well, since if she pays the mortgage for 2 years after I leave and maintains/upgrades the property, I should not neccesarily benefit from that.
But if she makes bank due to a red hot market, I want to be paid accordingly
Before anyone says it, yes it would be easier to just sell and split now, but I am not going to force my kids out of the house they love. A few more years and they will be out of HS and on their own.
Thanks for any suggestions. One thing I want to know is if the percentage system I outlined is correct, does it matter if I calculate the amounts before or after accounting for the balance on the mortgage, ie should I say the house is worth 960k or 560k? Or does it matter
Submitted April 14, 2021 at 08:51PM by Soggy-Selection8940 https://ift.tt/2QtTJAo
