How is the equity in our house actually calculated and split?
Answered by Chris Deutsch, Founder & Editor
Licensed Minnesota Realtor #20382264 ·
The short answer
The math itself is short: what the house sells for, minus the mortgage payoff, minus the costs of selling — commissions, closing fees, any agreed repairs. What's left is the equity, and that's the pot being divided.
On stage The 60-second answer
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The longer answer
The places it gets complicated are the inputs. The value: a guess invites a fight, so use an appraisal, a real market analysis, or the market itself. The payoff: get the actual statement — it's never the number on the last mortgage bill. And the split isn't always half: money one of you brought in from before the marriage or from an inheritance can be carved out as non-marital, which is attorney territory, not mine. I'm not a lawyer, and this isn't legal advice.
When the sale happens, the closing company typically cuts separate checks per the agreement — nobody has to trust anybody with a lump sum. I'll walk you through the full net-sheet math anytime, no obligation.
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From the editor's desk
“As Founder and Editor, I review, correct, and stand behind every answer.”
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