buy me out

[Deborah66]

My Husband and i are separating, i wish for him to buy me out of the house we jointly own, he says that i should take on half of the interest incurred from the loan to buy me out of this house, is this right or not ???

[beso]

He needs to pay you half of the value of the house at the time of settlement. Simple as that. How he obtains the money and all costs associated with the loan are entirely his problem.

If there are children involved or other property then these are also taken into account. In Australia factors such as the value of supernnuation are also relevant.

[beso]

Of course any mortgage on the house is also important. You pay him half the net of the house value less the mortgage.

Also you do not have to accept his valuation of the house. Usually several valuations are made and some compromise is reached. Good stastical methodology suggests removing the highest and lowest valuations and averaging the rest.

[cassa333]

Get a true market value of the house then either he or you get a morgage to cover it then any profit is split between you. If either of you cannot afford to cover the morgage then you may be stuck with it.

If for example your morgage is 5x your joint income it could be difficult to get one with just a single income.

[chattykathy]

i suppose he will give you half any profit he might make in the future????? What about any interest you have to pay on a mortgage then?

I think you split the equity therefore he has a new mortgage if he can afford it and he keeps any future profit.