Divorce Buyout Calculator
Calculate the equity payout required to keep the family home.
Estimated Total Equity:
$0.00
Buyout Amount Owed to Spouse:
$0.00
How Does a Home Buyout Work in a Divorce?
In a divorce, the marital home is often the largest shared asset. A buyout occurs when one spouse (the "buying spouse") pays the other (the "selling spouse") for their share of the home's equity, allowing the buying spouse to keep the property and remain in the home.
Calculating the Equity
Equity is the market value of the home minus any debts secured by the property. The formula used in this calculator is:
Buyout = (Home Value – Mortgage Balance – Other Liens – Selling Costs) × (Spouse's % Share)
Key Factors to Consider
- Current Appraised Value: Professional appraisals are essential to determine the "fair market value" rather than relying on Zestimates or tax assessments.
- Mortgage Balance: This is the current principal payoff amount, not the original loan amount.
- Selling Costs: Sometimes courts allow for a reduction in equity (usually 5-6%) to account for the costs the buying spouse will eventually pay when they sell the home in the future.
- Refinancing: The spouse keeping the home usually must refinance the mortgage into their own name to remove the other spouse's liability.
Example Scenario
Imagine a home valued at $500,000 with a mortgage balance of $300,000. The total equity is $200,000. In a standard 50/50 split, the spouse staying in the home would owe the departing spouse $100,000.