Equitable Distribution Sucks

[chi6488]

So NJ and I are trying to discuss assets and liabilities.

There is no incentive to want assets if there is equity.

Example House if there is 20k equity. If we sell we split 10k a piece. If I keep house I pay her 20k. Only incentive is to sell.

Anyone explain for me to see it in a different light.

[Trevor]

Use a spreadsheet. His assets. Her assets. His liabilities. Her liabilities. Joint assets. Joint liabilities.

Your math is wrong. If equity is $20k and you agree to 50/50, how do you conclude she gets $20k? In what mathematical realm does that computation exist?

[hoosier_dad]

Example House if there is 20k equity. If we sell we split 10k a piece. If I keep house I pay her 20k. Only incentive is to sell.

Anyone explain for me to see it in a different light.

I saw the marital home differently. Number 1 it was an opportunity to hold onto a stable base for the children which helped immensely with custody and any future attempts to modify custody. But with the depressed housing market it was also an ideal time to buy her out. Get an appraisal or two and you might be surprised how low that housing equity has dropped.

[chi6488]

I am using a program called divorce financials by easysoft. Just using the trial software

When I first input information like the house and boat that what the numbers are.

Here is an example.

My office is agreed value with her at $125,459. I then input loan amount of $89,154.

It say my net worth is $36,305. Do I split this net worth number or owe her the full 36K?

So after inputing all numbers and who gets what. If the net worth example for me is 90k and hers is 50k. Do we split the 40k difference or do I owe her the full 40k?

I am trying to get in with paralegal to have her use her program and explain to me but trying to also figure out on my own

[jumbledone]

So after inputing all numbers and who gets what. If the net worth example for me is 90k and hers is 50k. Do we split the 40k difference or do I owe her the full 40k?

My understanding is to split the difference. You both now have positive equity of 70k, rather than one having 90k and the other 50k.

[hoosier_dad]

My office is agreed value with her at $125,459.

Based on what? Market Analysis, original purchase price, comps or a full blown property appraisal. If it isn't based on a recent property appraisal it is worth the cost to get one.


Shouldn't take any special software to split your assets, just two columns of assets and liabilities. As long as the total assets - liabilities divided between the two columns is a 50/50 share you can mix and match any way you want. Also consider if you keep the house that you might have the option of a cash-out refi since you have greater than 80% equity, so it could open up some equity cash to you.

[chi6488]

Please don't worry about the agreed value amount. I have done my homework and can live with the values.

My question is the net worth numbers.

Do we split the difference in net worth amounts at the end??

One person said yes and it makes sense.

[Bubba Seal]

You split marital assets and debts 50/50.

If you have equitys that total $100,000 then $50,000 is yours and $50,000 hers.

Likewise whatever the debts are you owe half and she owes half.

Sometimes instead of offering her cash, you offer to take on more debt to get something for a lesser price.

Good Luck

[chi6488]

So here are the numbers and does this sound right?? These are important items. We have not gotten to retirement plans yet.

His Hers
Assets $338,569 $64,481
Liabilities $278,534 $22,403
Net worth $60,035 $42,078

This does not include the house value or mortgage b/c that is up in the air still.

Would I split the difference b/n the net worth amounts of 60,035-42,078= 17957

17957/2= 8978.50 Is what I would owe her to even the net worth amounts??

Yes, I am taking all debt and big assets. My office, boat, 10 acre lad, etc.... She can't afford or want these items. The house if we can't get a reasonable value more than what we owe I might take on the house as well.

[mbxdad]

So here are the numbers and does this sound right?? These are important items. We have not gotten to retirement plans yet.

His Hers
Assets $338,569 $64,481
Liabilities $278,534 $22,403
Net worth $60,035 $42,078

This does not include the house value or mortgage b/c that is up in the air still.

Would I split the difference b/n the net worth amounts of 60,035-42,078= 17957

17957/2= 8978.50 Is what I would owe her to even the net worth amounts??

Yes, I am taking all debt and big assets. My office, boat, 10 acre lad, etc.... She can't afford or want these items. The house if we can't get a reasonable value more than what we owe I might take on the house as well.

I think the confusion may be in how you are putting things into "his" and "hers" buckets.

There are really three buckets, like Trevor said: His, Hers, and Joint.

His = assets you had before you got married. Maybe an IRA.
Hers = assets she had before you got married.
Joint = assets you created while you were married

(and of course, same for debt).

Just set aside "his" and "hers". You / she get to keep them.

Your job is to split up the 'joint' assets equitably.

Here's a good book on the topic:

Divorce & Money: How to Make the Best Financial Decisions During Divorce