| HDH |
| (recently joined) |
| 01/31/09 08:13 AM |
how to split proceeds on sale of home...
|
Hi All,
My ex and I closed on the sale of the marital home yesterday. Since I had been paying the real estate taxes since the divorce, I am entitled to recover the pro-rata amounts due back at closing (let's say $5k for illustration purposes). This is not in dispute.
Also, my ex drew down from our home equity line of credit to put a down-payment on a new condo she is buying (let's say $15k for illustration) The HELOC was (obviously) closed upon sale of the marital residence, using the proceeds to pay it off. Therefore the net proceeds are reduced by the amount of her drawdown, so I am entitled to recover that amount at closing as well. This is also not in dispute.
The question I have is how to fairly split the proceeds so that I get the proper credits. Basically, should I take the $20k from the net proceeds first, then we equally divide the rest? *OR* should the net proceeds *first* be divided equally, then she gives me the $20k additional from her share?
I think the latter, not just because its in my favor, but because if I were to take $20k from the net proceeds first, those proceeds are already half mine, and my $20k credit would seem to dilute my share of the remaining proceeds to be divided equally. I think :-).
Our attorney is going to get another opinion or two before cutting the final checks but I wanted to ask here for opinions as well.
illustration: $100k net proceeds, $20k credit to husband:
option 1. recover credit first, then split:
100 - 20 = 80, split remaining = 40 each.
Husband total: 40 + 20 = 60
Wife total: 40
Option 2. split proceeds first, then recover credit from wife's portion
100 / 2 = 50 each
Husband total: 50 + 20 = 70
Wife total: 50 - 20 = 30
Appreciate your views on this.
Thanks,
Howard