Negotiating Home Equity Buyouts And Refinancing In Divorce

marital homeQuestion:

I am going to try to negotiate a home equity buyout agreement and refinance the home with my wife in our divorce case. Is there anything I should know about this process before starting to negotiate?


While I am not licensed to practice law in your state and am unable to give you legal advice, I can give you some general observations on this issue based on the jurisdiction where I practice.

Where I do practice in Virginia, an equity buyout depends on many factors.

The first, and most obvious factor, is how much equity is in the home. To arrive at this number, the bank will require that an appraisal be done, at the owners’ cost.

Once the equity is known, the parties must then figure out if there is enough equity in the home to cover the costs of originating a loan.

Second, the parties must figure out if the party who wishes to purchase the home has the borrowing capability. Frequently, one party will not have a good enough credit score or adequate income to get the loan without a cosigner.

Once you establish the total equity in the home, the total cost of the refinance, and whether or not the party can actually qualify for the refinance the remaining issue is who pays for the costs.

Questions regarding home equity buyouts require a specialized knowledge of local law. For these reasons I would suggest you contact an attorney who specializes in family law matters in your jurisdiction.

Remember, I am unable to provide you with anything more than tips on these matters, so please contact an attorney in your jurisdiction to obtain specific advice as to the laws of your state and how they impact your case.

To arrange an initial consultation to discuss home equity rights for men with a Cordell & Cordell attorney, contact Cordell & Cordell.

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