Difficulty: Moderately Challenging
Step1
Get an experienced lawyer that specializes in divorce settlements or division of home equity. A lawyer knows the various buy-out strategies and legal loopholes that may be needed.
Step2
Acquaint yourself with the home buy-out laws as pertains to divorce in your state. In some states you may obtain a "use and possession" award that entitles you to use the house and personal property for up to several years after a divorce.
Step3
Know that buying out a spouse's equity can be done in a number of ways. You might obtain a new mortgage in which you take enough cash out of the equity to pay off your spouse. If you have trouble qualifying for the loan, your spouse might agree to stay on your existing mortgage for a number of years or you might have a friend or relative willing to cosign for you on a new mortgage.
Step4
Realize that another option is to trade some other marital property in return for the equity in the home. For example, you could give up some share of your spouse's retirement money, a boat, a car or a vacation home in return for your spouse's share of the equity.
Step5
Note that another option is for the purchasing house to make payments to the selling spouse for a number of years. This option can be done by the having the purchasing spouse sign a promissory note to the selling spouse.
Comments
Louise4reform said
on 6/8/2008 So you get your decree. The house is yours. You have to get a new loan to get you ex off the mortgage so he can buy a house. You negotiated away the IRA and any interest in the business and all mutual funds. You also have to give your spouse and equalization payment of 50K - 10K now and 40K in 4 years @ 10%. Wife keeps the life insurance and transfers ownership. Wife gets spousal support. The judge orders everyone to cooperate with the transfer of title etc.
Ex-husband decides not to sign over title. Attorney has been paid yet another 5K to complete process. Now attorney wants to be subbed out. His job is done. Yet you still can't get your ex to sign title over to you. Bank is waiting to fund the refi and just waiting on clear title. Attorney is leaving on vacation. Now what?
Donna