house settlement--realistic or stupid?

Posted by: new_at_this

house settlement--realistic or stupid? - 10/20/08 02:23 PM

My husband and I are divorcing, and we have a young son. We owe $125,000 on a house that we bought with a $15,000 downpayment he got from an inheritance. The tax value on the house is $176,000 and when I do online appraisals, the figure goes much higher. However, I think that is unrealistic. None of the houses in our neighbor have sold for that, and with today's market, it would be impossible (I think) to get that much for it. Anyway, he is offering to walk away with all the credit card debt (about $25,000) if I walk away from the house.

I do not want the house for myself, and it would take me years to pay off my part of the credit card debt. Also, Even though I know that by law I am entitled to it, I cannot in good conscience take 1/2 of any equity in the home until the inheritance was reimbursed (it was given while the relative was still alive, just so my husband could buy the house). So by the time you deduct the inheritance, I don't believe there would be enough equity to cover my half of the credit card debt. So I am willing to go with his plan. Am I being realistic about this, or stupid for walking away?
Posted by: tonydenozo

Re: house settlement--realistic or stupid? - 05/28/13 11:40 PM

It depends on a professional appraisal. Tax appraisals are always low in my experience. If the home is in good shape and you want to know exactly what it's worth get an appraisal. He should have to pay half the amount of the appraisal. Usually they run from $200 - 300. The way the market is right now which is on the upswing you may have a lot more equity than you think. I am a guy and it wouldn't matter to me if he bought it with inheritance money or not if you lived there as husband and wife you better bet I would take what I could get. The old saying is " never walk away from equity". Hope that helps.