Thank you.

If you wife is seeking 50% of the property - and you want the simple answer to your initial question, it would be the equity not the value.

However, there is no exact science about division of assets and property upon separation or divorce, it is based on the individual circumstances of the parties, the length of the marriage and any children to the marriage etc. Therefore, I am sorry if you want a definitive answer, but I cannot give this.

Often the starting point used for couples to consider dividing property and assets is 50/50, but that is not fixed and in some cases a court could award a much different split.

In this instance, given the debts (you do not say if joint or sole) and the property being both owned by you solely for some time prior to the marriage and heavily mortgaged etc, it may well be unreasonable for your wife to receive 50% of the value of the equity in the property. However, as you have a child together, your wife could apply to the court to allow her to remain in the property until your child reaches the age of majority - if this was affordable.

To give you a better idea of what could be considered fair and reasonable, I would recommend you have a look at this link and the answer the questions contained therein on your specific circumstances, earnings, debts etc- https://www.moneyadviceservice.org.uk/en/tools/divorce-and-separation-calculator

This will enable you to enter into discussions on an informed basis on your financial ability.

If you need anything else, please ask.