would entail refinancing the home. The real challenges come in working out the details. There could be disagreement about the selling price or the appraisal value. Or, the equitable division of the property may not meet expectations. Other questions that arise include the possibility of giving up marital property rights in exchange for other assets, like investments. The ex-spouse may lose out on future appreciation of the house. It is crucial to know that questions like these will arise when it comes to the division of property in a buyout situation and that you have to be prepared to address them. If after consulting with an attorney you find that a refinance is your best option, make sure you hire an appraiser. They will give you an objective value on your home's worth that neither party will be able to argue. This is not something that should be determined by speaking with a neighbor and getting their opinion. As a real estate that specializes in divorce and separation, I create CMA's (comparative market analyses) for my clients all the time, and offer this service for FREE, unlike the $500-$700 a typical appraisal company will charge. While my CMA will give you a range of what the property is likely worth, it is important to note that an appraiser should be able to provide an exact figure, as this is their field of expertise. Unlike Realtors, they have undergone the proper training to determine a property's exact dollar value through a variety of methods. Refinancing the home in one spouse’s name means not only settling the previous loan but paying the selling spouse their portion of the buyout. As an example, if the principal balance owed is $100,000, and there’s another $100,000 in equity, one- half of the equity ($50,000) would be due the selling spouse, and $100,000 would be required to pay off the principal. The refinanced loan would have to be at least $150,000. If the house value has appreciated, who is entitled to the equity? What if the property is appraised lower than the current loan? All scenarios must be considered before deciding on a buyout. Again, knowing your financial standing, and strategizing with a trusted family attorney before filing for a divorce is paramount. Remember,
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