Home Equity

In this section, we will take a look at what home equity is and then also what it means when it comes to divorce. Because when couples do decide to end their marriage, there is normally a marital home that the couple will have to make decisions about.

Meaning of home equity

Most of us will have a vague idea of what home equity means, but let's take a closer look. Home equity can be explained like this; it is the difference between what you and your spouse owe on the mortgage and what the property is currently worth. As you pay the mortgage, the amount of equity will rise. When the value of your home is more, your home equity increases. So, the more you pay on your mortgage the higher your home equity will be. Sadly, your home equity could also fall, this happens when the value of your home has dropped. To work out your equity at any time, you will need to know the current value of your home. A real estate appraiser will have to give an official valuation of what your home is worth.

Home Equity and divorce

When deciding to get divorced, the spouse who keeps the house may have to take out a larger loan to pay off the existing loan and to pay the equal amount of equity to the other spouse that he or she is owed. Spouses must get an accurate figure relating to the amount of equity in the property, as this amount will be provided or divided between the spouses. Once an amount is determined, the spouses will then have to agree about how to equally split the equity between them. Divorce Mortgage Guidance can assist here as some factors may come up between the spouses. For instance; if both spouses worked during the marriage and contributed equally to the mortgage, a 50/50 split is usually decided on. But issues do arise if one spouse contributed more to the mortgage or they put down a deposit. We will be able to sit down with you both and discuss the division of the home equity and any other contributing facts that may affect splitting the equity.

What we can do for you

Divorce Mortgage Guidance has the knowledge when it comes to home equity and divorce. Therefore, when we meet with you, we will be able to explain home equity to you and your spouse. We will also be able to send a real estate appraiser to go and value your home for you so that an accurate amount is determined, as this is very important when it comes to splitting the home equity or having to pay out your spouse for their share. We will look at your current financial situation and determine if the house can be kept or if the best decision is to sell it and divide the equity.

Costs

We keep our rates as fair as possible but also ensure that you get the guidance that you and your spouse require when deciding on a divorce. Home equity is different for everyone, as well as their situations, so when taking a look at all of this we will be able to give you an estimated rate for our services.