# So how does it work re: mortgage and separation/divorce?



## highwood (Jan 12, 2012)

So if we say owe about $100,000 on our mortgage and the house would sell for $380,000...how does that get split up between the couple if there was a divorce or separation?
Thanks

I should state we are in Canada so now sure if it differs from the states.


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## SadSamIAm (Oct 29, 2010)

Pretty simple math .....

If you bought it together while married. Then you would each get $140,000.

$380,000 - $100,000 = Profit of $280,000


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## highwood (Jan 12, 2012)

But don't we have to split the debt on it as well?


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## Hope1964 (Sep 26, 2011)

Are you selling the house or keeping it?


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## highwood (Jan 12, 2012)

I would probably stay in it myself as son is still living at home. Then maybe reevaluate one day after he leaves home.


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## highwood (Jan 12, 2012)

I just want to know what I would be looking at in terms of mortgage, etc. Right now we have 7 years left but me on my own would probably have to up the amort. to 25 which is fine. I would still come out of the marriage with a lump sum of money as well..I am thinking as we have pretty decent savings.


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## Hope1964 (Sep 26, 2011)

Then you probably have to buy him out.


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## highwood (Jan 12, 2012)

But how does that work? So the mortgage would be $150,000 that I would be working with...(100,000 + 50,000 my share of debt)?


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## highwood (Jan 12, 2012)

Regardless..that is one of the last steps. WE would try a separation first for at least 6 months in which he said he would keep paying the mortgage anyway.

More and more I am leaning toward this way...right now he is working away from home for the last week or so and is due back on Wednesday.

I find that I do not really miss him while he is away, as well I feel calmer and more peaceful at home. Plus he works these jobs away and then you never know when the next one is..so after Wednesday is he going to be home for a week, or two weeks, or a month or 6 weeks....because then we start to get on each others nerves. It is like we do not enjoy being together.


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## Hope1964 (Sep 26, 2011)

I don't know, really. Maybe if he is willing to let go of all that equity he could just take his name off the mortgage and you're done. But my guess would be that, to be fair, you would have to pay him his half of the equity, $140,000.00


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## Sanity (Mar 7, 2011)

Assets and liabilities incurred in the marriage are usually divided up between parties but its common for people to "settle" and give the other spouse "go away" money ie take equity out of house and write check. 

Debt like credit cards are also considered a liability. Many divorces end up using debt as a bargaining chip to get something in return. For example, a friend of mine offered to take the credit card debt in exchange for her not asking for alimony.

In the end, it all comes down to mediation, what is written on the piece of paper and how much stamina you have to fight an expensive legal battle. If you want out as quick as possible, you might be the one who blinks first and gives in. Just remember that at this point you need to look at what YOUR financial interests are and making sure your attorney looks out for YOU.


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## Sanity (Mar 7, 2011)

Hope1964 said:


> I don't know, really. Maybe if he is willing to let go of all that equity he could just take his name off the mortgage and you're done. But my guess would be that, to be fair, you would have to pay him his half of the equity, $140,000.00


The bank won't remove his name off the note unless she refinances or the house is sold but then again its best to call the bank and let them know what is going on and speak to your attorney.


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