I’m getting divorced and trying to buy out my spouse and assume the mortgage. I’m in TX if that matters.
I’m scared and have lots of questions.
We are working out the divorce decree.
How do I calculate the buyout amount if I put down $100K and paid the mortgage since inception? My spouse contributes 40-45% of other household expenses.
When should I buy out my spouse? When the decree is finalized? When I assume the loan? I have the money but don’t know if it will mess up my DTI to assume the mortgage.
How does PNC bank mortgage lender calculate DTI? Do my savings and investments get considered?
Do I need to do a quitclaim deed when filing the decree and also a special warranty deed if I assume the loan?
I would appreciate any help you can provide. Thank you!!!
Did you already call your mortgage company to be sure they offer loan assumption? Mine would only offer that for VA loans. Also, your investment and savings are not considered for DTI. They’ll look at your monthly obligations and deduct that from your gross salary.
Okay, for the rest of your questions, I do not know. I would imagine you want the divorce final before paying anything out. Generally, the recommendation is 50/50 on all things.
You probably need to ask your lawyer. I am also in Texas. Did you put the $100K down when you were married? If so, I believe half of that down payment was your spouse’s. How the household expenses were divided probably won’t matter either. Market value - amount owed = $x. 1/2 of $x is the buyout unless you work something out privately.
If you put the down payment down AND paid the entire mortgage AND your spouse only paid 40-45% of the other household expenses, you don’t owe your spouse a penny in my opinion. In fact, your spouse is the one who owes you money. Generally, the terms of the buyout are negotiated in the divorce. I believe you don’t owe him a cent, and he should quitclaim off the deed.
@Tatum
Thanks. I felt that way because I bankrolled his life for a decade and was verbally and emotionally abused most of it. What would be a fair token amount? He’s struggling.
Drew said: @Tatum
Thanks. I felt that way because I bankrolled his life for a decade and was verbally and emotionally abused most of it. What would be a fair token amount? He’s struggling.
I would offer something like $5-10K personally and see where that takes you. I’m happy for you to be moving on. It’s also a good idea to have someone representing you legally if that’s an option.