You get divorced. You want to keep the home and buy out your ex-partner. But how much should the buyout amount be? For this you have to take into account three parameters . In this article we list everything for you and we also give you a concrete example .
1. How much is the home worth?
If you get divorced and want to buy out your ex-partner, you have to start from the beginning: how much is your house worth ? There are different ways to determine the value:
• Online simulation tools give you a first indication.
• Real-estate agents rather give you a commercial sales value.
• Independent estimators are neutral.
It is therefore best to appoint an independent estimator. This way you will have the least discussion with your partner and afterwards you will receive an independent report that serves as the basis for determining the buyout sum.
If you want to know who draws up such estimation reports in your area, please contact us. We arrange an appointment as quickly as possible so that the estimator can quickly give a value. Moreover, we are happy to help you with financing the buyout sum.
2. What is the remaining balance of the Good Finance?
You have probably taken out a home loan for the purchase of your home. Two questions are important here:
• What was the amount borrowed?
• How much still needs to be paid back?
This remaining balance of the Good Finance is a second parameter that you have to take into account when you get divorced and you want to buy out your ex-partner. Do you not know where and how you request this? Contact our specialists. They will sort it out for you.
3. Was there a contribution from you or your ex-partner?
As a final criterion you must know your own contribution from yourself or your partner. Under normal circumstances, a personal contribution to the purchase of the house can always be recovered in the event of a divorce. The more evidence you have for this, the easier it becomes when discussion arises. Hopefully it will not come to that. Our employees can help you. Make an appointment without obligation.
Concrete example – how do you calculate the buy-out sum?
You bought a house a few years ago for an amount of $ 120,000. Your partner and yourself took out a home loan at the bank for this and borrowed $ 100,000. Currently, $ 60,000 of this still has to be repaid. You have done some work in the house and have always maintained the house well. An independent appraiser values the property at $ 150,000. At the time of purchase you had $ 20,000 of your own resources and your partner $ 10,000. How do you determine the sum to buy out your partner? We already inform you that the balance of The Shadow is usually taken over by those who want to buy out the partner. The example makes this clear. Are you still stuck? Contact our employees.
Concrete example of the calculation of the buyout sum
Current home value = $ 150,000
Balance of the current The Shadow = $ 60,000
Your own contribution = $ 20,000
Own contribution from your ex-partner = $ 10,000
$ 150,000 (home value)
– $ 60,000 (The Shadow balance)
= $ 90,000 (balance to be distributed)
If you decide to sell the property and repay the housing loan in full, $ 90,000 remains. If you divide this into two equal halves, each of you would receive $ 45,000 at the divorce.
The difference between your own contribution and that of your ex-partner is $ 10,000 (in your favor). This would mean that with a normal sale and settlement you could be entitled to $ 50,000 ($ 45,000 + $ 5,000) and your partner to $ 40,000 ($ 45,000 – $ 5,000).
The buy-out sum would therefore be $ 40,000.