New Jersey Divorce Lawyers Blog
Once you have determined who owns the marital real estate, the next question is whether there is equity in the property to be distributed. Equity is the monetary value of the property if it were to be sold. A few examples will illustrate the concept of equity:
Example 1:
Husband and wife own a home worth $500,000
The bank is owed:$300,000
The equity To Be Distributed is:$200,000
If the property is sold Husband will receive $100,000 and Wife will receive $100,000.
Example 2:
Husband and wife own a home worth $300,000
The bank is owed:$300,000
The equity To Be Distributed is:$0
If the property is sold Husband will receive $0 and Wife will receive $0.
Example 3:
Husband and wife own a home worth $275,000
The bank is owed:$300,000
The equity To Be Distributed is:-$25,000 (negative equity)
If the property is sold Husband will owe $12,500 and Wife will owe $12,500. Continue reading →