Hello,
My wife left me this year and we have lived in the same house for about 6 years now. We have not formalized the divorce yet but she made a comment the other day about something that raised a question for me.

I was talking about trying to refinance the house so I could hopefully get a lower monthly payment. She made a comment about her getting equity from the home once things turn around.

So here is the scenario:

1. We paid $265 for the house about 6 years ago.
2. We took a 2nd mortgage out a number of years ago.
3. Currently at the time of our split we owe $298k.
4. We have been told the house is not worth $298k today (the most recent appraisel however was summer of 07 said $320k) The reason I am saying it is not worth $298k today is this is what I heard from a possible refi option. This was general conversation though.
5. I am paying the 1st and 2nd mortgage (as we have split the bills and I am staying in the house).
6. My goal is when we go formalize the Divorce is to work on getting a quit claim deed signed.

I guess I am under the impression that there is no equity in the house today due to our 1st/2nd mortgage therefor she gets nothing. If in 10 years as I am paying down the 1st and 2nd and the house market turns around should she be eligible for any equity at that point in time?

If there was equity in the house now I would feel different but since there is nothing at this point in time I look at it as I am taking on 100% of the debt.

I would love to hear opinions on this or even if there are guidelines or laws on this.

Thanks,
Garrett

divorce lawyers will need to get home appraised at time of divorce.
THAT will be the value that ex-spouse has claim to

ex cant come after you for more later.

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As stated above, your ex will have to have the house appraised. I would split the cost with her and make sure you use a neutral appraiser, to be safe. If you don't think the house is worth the appraisel price, you should sell, then split any equity.

Thank you for your replies. I appreciate it. This gives me some comfort because I don't want to worry about 10 years from now and her wanting to come back for equity.

I will look into this.

Garrett