What happens to home equity when buying out a partner?
If you buy out your partner, you must pay him or her his or her share of the home’s equity. Equity is the difference between the home’s current value and the remaining mortgage balance. Suppose the equity is €50,000; in that case, you’ll have to pay your ex-partner €25,000 if you each own half of the home. You can finance this amount by taking out a new or increased mortgage.
More questions about divorce or separation
- Are you still entitled to mortgage interest deduction after a divorce?
- Do I need a notary to change the mortgage in a divorce?
- What about mortgage interest deduction after a divorce?
- What happens to my interest-only mortgage if I buy out my partner after a divorce?
- What if I do not meet the income requirements after the divorce?
Still have a question?
Is your answer not listed? Feel free to contact me — I am happy to help you further.
Book a meeting