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Determining the cost of a home buyout

On Behalf of | Oct 7, 2019 | Divorce

Those who are getting divorced in Texas or any other state may need to determine how they will split their marital home. In some cases, one party will agree to be bought out by the other. However, there are many steps that need to be taken to determine how much an individual must pay to his or her former spouse. The first step in the process is to determine how much the house is worth.

This is usually done with the help of a professional appraiser, and each person is entitled to have the home appraised by a professional of his or her choice. However, it may be faster and less expensive for a divorcing couple to agree on one person who will determine a home’s market value. Appraising the home will make it easier to figure out how much equity it has.

Equity is the different between the value of the property and the balance left on a mortgage or any other loan that is guaranteed by the home itself. In addition to having the home appraised, it could be a good idea for whoever is going to buy it to pay for an inspection. The person who will be taking the home may also need to consider refinancing the current mortgage after officially becoming its sole owner.

In addition to a home, other assets may need to be split at the end of a marriage. These assets may include money in a joint back account or the value of an IRA or 401(k). Retirement accounts may be considered joint property even if only one person’s name is on the account. An attorney may be able to help an individual obtain a settlement that provides the resources needed to live comfortably after getting divorced.