Monthly Archives: April 2021

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Apr 30, 2021

Home Equity

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Home Equity & Divorce in Maryland For many of my clients, the primary home is the most valuable asset they own. “What to do with the House” can be a big sticking point in any divorce. It’s important to understand what home equity is and how it can affect the financial aspect of your divorce. The following is general information and should not be taken as legal advice, to learn more about your specific situation, take advantage of a Free initial consultation with Brandon by calling 204-395-1418 today. What is Home Equity? In the most basic terms, home equity is the part of the house you own. Typically when people purchase a home, they do not pay for the entire price. Typically buyers make a down-payment for a percentage of the home’s price, and then take out a loan called a mortgage to cover the rest. “Home Equity” refers to the difference between the value of the house and the amount of the mortgage. Here is a very basic illustration; we will use the example of a $300,000 house and a 20%, or $60,000 down payment. Using those numbers, you could say this buyer has $60,00 in “home equity” at the time of their purchase. How Does Maryland Divorce Law Treat Home Equity? Home equity is just like an other asset in a divorce, but unlike a checking account, home equity can be more difficult to calculate as it doesn’t have as clear value. The home can also play a […]

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