Q: I am currently trying to settle equitable distribution on my divorce. Our major asset is the home.
My husband is allowing me to buy him out. All assets, including the home, value was determined based on date of separation. I paid for the date of separation home appraisal, as instructed to by my lawyer. Now with the home prices fluctuating, the value of the home is being challenged by my husband, and my buyout amount seems to be changing daily. I am motivated to buy him out and I had all of the money ready with the date of separation buyout and the assets calculated to pay him. How do you determine a fair amount for the home now if current housing prices continue to change? I have paid for the mortgage from the date of separation until present, so do I receive monetary credit for that in equity, or based on his half of the mortgage that he should have paid from date of separation till present?
A:
It would seem that these questions should be directed to your current attorney. That said, if I was representing your husband I would certainly make sure that your buyout reflected the current value of the home.
The gain in value of the home since the date of separation (through passive market gains) is likely passive appreciation which should correctly be considered by the court in any distribution. You will likely need to account for this gain in your settlement negotiations.
To the extent that your payments have reduced the home mortgage payoff, I believe that you should be entitled to some credit for this amount, but don't see how you would get credit for half of the payments (interest and principal) that you have made.
David Allan King agrees with this answer
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