Q: My spouse was awarded the home and responsible for the mortgage until refinance. The
mortgage was in my name alone.
Is my equity determined by full payoff balance or the principal owed?
A: Unless you sit down with a family law attorney to review the terms of the court's order or your settlement agreement, it is impossible to determine your equity interest, what responsibilities your ex has for payment purposes for the mortgage balance and whether your equity interest is valued currently or at a later date.
A: Thank you for your question. The net equity of a home is generally calculated by taking market value (appraised and/or agreed upon value) minus the entire mortgage that is owed (full payoff). There are circumstances in which a party paying the principle may get a credit for such payments but additional information is required to address these issues. I recommend speaking with an attorney to discuss further to better guide you.
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