“I’ve joined the my wife’s having an affair club.” That’s what the text message read from one of my oldest friends a few weeks ago. After talking him off the ledge, I convinced him to liquidate their assets, split the proceeds down the middle and start again. Save for the emotional harm, this is the most rational route.
After a week of couples counseling, he realized there was no hope, so he looked at their finances. They owe about $250,000 on a house that’s worth $225,000. She ran up $50,000 in credit card debt. He was convinced he was screwed.
As the primary earner in the house, he could easily take over the mortgage payments. When I convinced him to dissolve the business known as his marriage, he was happy to send her off to go live with the new boyfriend.
If they had any equity in the house, by most state’s law he’d be obligated to buy her out for half the equity. At this moment, the end of the marriage, the venture is $75,000 in the red.
His answer is simple. Take the house, split the $50,000 of debt with her (or even negotiate a settlement based on the negative home equity) and call it a day.
This is in contrast to another couple I knew who recently split. They had six figures in equity, she didn’t work, and he had to buy her out.
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