On behalf of Stange Law Firm, PC posted in Family Law on Friday, October 11, 2019.
For divorcing couples in Missouri, the family home is usually a major asset. One option that couples have is to sell the home and then split the profits. Another option is for one person to continue living in the home, especially if there are children, and buy their soon-to-be ex-spouse’s share.
For a buyout to occur during a divorce, the couple needs to know the value of the house. They can hire appraisers to get the current fair market value of the house. Both parties should choose an appraiser even though this will essentially double the cost. However, it is usually necessary to come to an agreement. If the appraisers offer a similar number, everyone may feel satisfied with the calculation. However, if one appraiser had a number much higher or lower than the other, a third appraiser may be brought in.
A big part of calculating how much a divorce buyout would cost is knowing how much equity there is in the home if it has a mortgage. This is pretty simple to determine. A couple would take how much their house is worth and subtract how much is left on the mortgage. That number would then be divided. The divided number represents how much each spouse has in equity in the house.
Once an agreement is made and the couple moves forward with the buyout, one of their names will need to be removed from the title. A person in this situation may wish to speak with a family law attorney. The lawyer could offer advice on the best legal way to have a person’s name removed from the title after divorce. Legal counsel may also be able to give advice on alimony, spousal support, custody, and other family legal issues.