No equity in the house to divide?
House has both husband and wife on title/deed.
Husband has mortgage solely in his name and credit.
Few months ago husband refinanced house.
House’s appraised value is the same dollar amount as the loan/mortgage amount.
Wife moved out of the house into an apartment of her own and filed for a divorce. (Wife doesn’t have income or creditworthiness to refinance or pay for house.) Wife only wants “her share” of equity out of the house.
Husband wants to remain living in home and continue to pay mortgage (but take wife off of deed at end of divorce). Husband doesn’t want to sell property due to a hefty pre-payoff/pre-payment penalty. (Isn’t wife responsible for half of the pre-payment/payoff penalty?)
What options are there for this?
How does one divide equity in a house that doesn’t “have” any?
**How would one pay half the appraised value of the home and “buy out” the other if there is still a mortgage owing for the full appraised value? They’re married, so she legally owns half of everything, including the home AND THE DEBT right?