Q: I hold the mortgage both my ex and I are on the deed. When the house sells, how do we divide the equity?
I refinanced the house taking my ex-wives name off the mortgage but it remained on the deed. The only thing the divorce decree says is the we will hare the "net equity". The house is selling 6 years after the divorce. What goes in to "net" equity. My realtor says i can take principal payments, taxes and insurance off the top before the equity is divided.
A: If your agreement doesn't allow to deduct payments and taxes, you cannot. Net equity is sales price minus closing costs and mortgage. Deducting the payments would mean you got to live there for free for 6 years. You had to pay those somewhere.
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