When couples in Virginia and other states go through a divorce, it is common for one spouse to buy out the other’s share of equity and keep the family home. This is especially true if children are involved. Here are a few basic steps for calculating a house buyout when going through the divorce process.
The first step is determining the value of the home. If there is a mortgage on the home, the equity on the home needs to be determined. For example, if a home is worth $600,000 and the mortgage is $300,000, each spouse will have $150,000 in equity in the home.
An appraiser should be contacted in order to determine the fair market value of the house. Each spouse will usually hire an appraiser in order to reach a deal. A third appraiser may need to be brought in if the first two appraisers reach significantly different numbers. The appraisers will use the condition of the home and any amenities in the home to decide on the fair market value of it. After mortgage considerations are looked at, each spouse will know exactly how much of the house they own.
It is also wise to have a home inspector check for plumbing problems, issues with the HVAC system, termite damage and other problems that would change the value of the home. The divorcing couple or their attorneys would need to determine how much repairs would cost and how these costs would be taken care of.
Many questions usually arise during the divorce process, so an individual may wish to discuss their situation with a divorce attorney. The attorney may be able to provide advice on joint debt, joint assets and other financial issues related to the divorce process. The attorney may also represent their client in court if it is necessary.