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Buying out a family home during a divorce

On Behalf of | Oct 10, 2019 | Family Law

One option that many Georgia couples consider when getting a divorce is to sell the family home and use it as part of the divorce settlement. Another option, especially when children are involved, is for one spouse to buy out the family home from their soon-to-be ex-spouse and continue living in it. When a couple decides to do that, they need to calculate the house buyout.

There are a couple of calculations that need to be done in order to determine how much the home is worth and how much each spouse owns. The first thing that needs to be done is to hire an appraiser to determine the fair market value of the home. It is usually necessary for each spouse to hire an appraiser in order to reach a deal. A third appraiser may need to be brought in if the first two have calculations that are drastically different.

If there is a mortgage on the home, how much each spouse owns needs to be determined. The first thing to do is to take the fair market value of the home and subtract what is owed on the mortgage. That number will be divided and represent how much each one owns in equity.

It may be necessary for one spouse to refinance the home after a divorce buyout. This may change how much the person pays because a new mortgage will be based on the one individual’s income, credit score and the amount of debt they have.

The name of the ex-spouse will have to be removed from the title of the family home. An individual may want to work with a family law attorney to find out the options that are available for doing this. The attorney may also provide advice on financial matters relating family law, divorce and child custody.

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