Oh dear, that was a long e-mail...... ok, here is the brief outline, I can provide more details if required....
My wife and I are getting divorced, we live in Las Vegas, Nevada. We purchased a home in April 2009 for $315K, the deposit was $32K which we jointly borrowed (although in the documents it stated that this was a gift) off my wifes father. I personally have paid back $5K which leaves a balances of $27K owing.
In the break up of the marriage
, I want to keep the house so we have to come up with a number of agreed equity in the property.
Although we have not had a valuation, lets say I agreed the value to be $370K. My concern is over the calculation of the equity mainly as I think I am being fleeced.
Here is the basic calculation I believe to be correct...
Agreed Value $370K
LESS Mortgage $287K
LESS Owing to Father $27K
NET EQUITY $56K / 2 = $28K (owing to wife)
PLUS $27K / 2 = $13.5K (owing to wifes father)
LESS $5K (50% of the joint line of credit owing)
TOTAL $36.5KHOWEVER, HERE IS MY WIFES RESPONSE TO THAT CALCULATIONThe equity is the difference between the value less mortgage less fathers loan of $27K.
This brings (as previously discussed at the kitchen table and I thought agreed) the available equity to $56K divided by 2 = $28K each in equity. Then you have to pay my father back the $27K. I will pay him my half at a time that suits me so split the $27K, half to my father and half to me, $13.5K.
MY QUESTION (and maybe I am missing something here)
I agree the equity calculation getting to $56K. What I do not agree with is the fact that I have to repay the full $27K. Surely, if this has been already deducted ($370K-$287K-$27K
) I sould only be re-paying the $13.5K?? It seems to me that she is getting equity from the property here, but I am taking up the full liability of the $27K. So, in reality my equity is $28K les $27K really.
Does that make sense? I need detailed advice and help on this.
So my $28K less $5K to repay the line of credit = $23K + $13.5K = $36.5K payable to me & $13.5K to my father = $50K