[USER]

I am about to file for legal separation. I have my own reasons for choosing this instead of divorce. I am financially stable with a 6-figure income.

Because of my financial planning, we have no debt except for 80k on the house (worth 250k; I heard him say that he’ll try to sell it for 270).

Now, see, I want to buy him out so I can keep the house (he doesn’t know that I am thinking this).

I want to keep the house because we have 4 dogs I am keeping and we have a fenced yard. Rehoming these dogs is NOT an option.

Obviously no one will rent to me because of the dogs.
After all the cash and non-retirement money are split, I won’t have enough to buy him out.

I would probably have enough for a few months’ EF and get a car, nothing more

So my question is this – what’s the best way to raise funds to buy him out, with less interest as possible?

I’m scared to take in more debt but, I am confident in my ability and resolve to pay it off quickly and I am willing to do whatever it takes to pay it as soon as possible.

[Alex]

You must be able to have him sign a quitclaim deed.

[Donna]

I would buy a new house and call it a day, you make 6 figures. After the divorce it’s better to live a new life in a new setting to get rid of bad vibes.

Also, you may find a new partner and it’s better not to cling on old memories that occurred in the house.

Time to reinvent yourself. Why go through the hassle, your current home is not the only home that can house 4 dogs.

Besides, you may be able to sell the house for more and take half of the sale and end up with more money than if you buy him out.

It’s better to make things less complicated. If you want to stay maybe refinance plus quit claim deed.

[Taryl]

Go to the bank. You finance the amount needed to buy him out.

[Rob]

Do you even need to buy him out? You said you’re still going to be married.

Doesn’t that mean you’ll still be financially tied to each other?

[Melanie]

If both your names are on mortgage then you will need to refinance the house. I’m sure his atty will insist upon that.

Then you can mortgage how ever much you want and can get approved for.

[Patty]

Is it amicable enough that he won’t be a pain and not sell out to you once it’s stated that that is your plan?

Would you qualify for a loan on another home with a fenced yard? Perhaps even house hacking with a duplex.

[Pri]

1. Great idea to separate and plan things ahead of time

2. Plenty of opportunities to rent a single family home with a backyard for.dogs for a couple of years until the madness of high value and interest settles/balances. Just my 2 cents.

The crazy mortgage or loan interest is simply NOT worth it I think.

3. Let go of the past including the house. It will HEAL you like you can’t imagine

[Angela]

You’d have to buy him out. If it were me, I’d point out all the homes flaws & repairs needed to sell it.

And estimate the costs involved in selling, Realtor fees, etc.

Then subtract all that with the amount still due on the existing mortgage to start coming close to a realistic number to buy him out.

He wouldn’t automatically get half of $270k just because he thinks he can sell it for $270k.

[Paige]

The obvious answer to me is to refinance under your name and buy him out. You’d need to finance the $80K still owed plus his share of the equity which is $85k

[Alicia]

Leverage your assets. You mentioned your debt and vague income, but do you have 401ks, life policies, non qualified account or other assets you could leverage or loan from?

[Lauren]

Get at least two appraisals to determine market worth. You buying him out will save approximately 10% of the sales value in real estate commissions, closing costs, and typical pre-sale repairs.

Then come up with a proposed equity proposal. You will probably need to refinance but check to see if your existing mortgage is assumable.

If it is would he be willing to take a greater share of retirement savings in exchange for the equity?

Or other assets? The combined value of the marital property is in consideration and not everything needs to be split evenly.

[Dave]

With a 6-figure income you should easily be able to afford a HELOC even at 9-10%.

Should be able to get a limit of at least $100k. Use as little of it as you need – knowing you’ll have the rest if you needed it.

Use the appraisal for the HELOC for your own valuation purposes

[Author]

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