My ex-husband and I are co-owners of the condo we currently live in. Can someone please tell me how a typical buy-out works? He wants to buy me out but we are disagreeing on how this typically works.
My impression was that we get the house appraised for its current value, then based on that number, subtract the amount of money we still owe on the mortgage and that's the amount of equity we split. So if we paid $265 for the house and it's now apraised at $275, that would be $110 in equity. We would each get $55K, right?
So if he wants to buy me out, he would have to refinance the house for the amount of the mortgage left on the house plus half of the equity he owes me -- which would be $55K. Is this right?