- 1). Determine the home's value and payoff amount. The value of a home may be assessed using several means, ranging from a simple inquiry to a tax assessor's office, to online property value estimators such as Zillow.com, to hiring a professional appraiser. A professional appraisal will get you the most accurate value, but it can cost several hundred dollars. The payoff amount is relatively easy to obtain, by comparison, because you can quickly and easily request it from the mortgage holder.
- 2). Subtract the payoff amount from the value, and divide by 2. To arrive at the dollar amount each spouse should reap from the home's equity, first subtract the payoff amount from the appraised value to determine the total equity in the home. After this number is found, divide by 2 so that each spouse receives an equal amount. For example, if a home appraises at $250,000 and has a payoff amount of $150,000, the home is said to have $100,000 in equity. Dividing that number by 2 means each spouse would receive $50,000 were the home to be sold.
- 3). Refinance the home in your own name. With all financial figures available, begin shopping for a refinance mortgage. These home loans are somewhat easier to obtain than a first mortgage, especially with a positive credit history. Be sure to consider important variables, such as interest rate. Many lenders are willing to refinance the home for the remaining payoff balance, effectively transferring the mortgage from the previous lender to the new one. Some lenders may also be willing to offer a loan for more than the payoff amount, allowing the spouse who retains the house to capitalize on the equity in the home and receive enough cash to buy the other spouse's share.
- 4). Give the departing spouse a payment in the amount of his or her share of the equity. After closing the refinance loan, compensate the departing spouse for his or her share of the equity using a traceable payment instrument such as a check or bank transfer; using a payment instrument that can be verified may help allay future questions. After completing the refinance and this payment, the spouse's share of the mortgage has been effectively purchased.
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