New loan amount (estimated)
$300,000
Current balance plus the buyout, in one refinance
The split is set by your divorce settlement and the court, not by this calculator. The new loan is larger than your current balance, so qualifying on one income is the next question. Loan-to-value ceilings differ by program; in Texas a properly structured owelty can remove the 80% cash-out cap, with the loan program setting the ceiling.
Estimates only. Your actual numbers depend on your loan, credit, and property. Outputs are an illustration of the math, not an approval, a qualification decision, or a rate quote. No rate is prefilled; any payment uses a rate you enter.
The numbers above are an illustration of the math, not an approval, a qualification decision, or a rate quote. The equity split comes from your divorce settlement and the court, not from this tool.
How the Divorce Buyout calculator works
What this calculates
Estimates the new loan and loan-to-value when one spouse keeps the home and buys out the other's equity. Equity is the appraised value minus what you owe; the buyout is the departing spouse's share of that equity, set by your settlement; the new loan is your current balance plus the buyout. A planning estimate, not a quote.
The formula
Total equity = appraised value - mortgage balance. Buyout amount = the departing spouse's share of that equity, entered as a dollar figure or as a percent from your settlement. New loan = current balance + buyout amount. Loan-to-value = new loan / appraised value. An optional monthly principal and interest figure uses only a rate you enter.
A worked example
Hypothetical, for illustration only, with an even split your settlement would actually set: a $400,000 appraised value, a $200,000 current mortgage balance, and a 50% equity split.
- Total equity = 400,000 - 200,000 = $200,000
- Departing spouse's share at 50% = $100,000 (your settlement sets the split, not this tool)
- New loan = 200,000 + 100,000 = $300,000
- Loan-to-value = 300,000 / 400,000 = 75%
About a $300,000 new loan at 75% loan-to-value in this made-up example. The new loan is larger than the old balance, which is why qualifying on one income is the next question, and the split comes from your settlement, not the calculator.
Assumptions and limits
- The equity split is set by your divorce settlement and the court, not by this tool.
- The new loan assumes the existing balance and the buyout are financed into one refinance.
- Program loan-to-value ceilings differ by loan type; in Texas a properly structured owelty can remove the 80% cash-out cap, with the loan program setting the ceiling. See the buyout and owelty guides for the sourced figures.
- Any monthly payment requires a rate you enter and is an estimate, not a quote; no rate is prefilled.
- A planning estimate, not a pre-approval, an appraisal, or a commitment to lend.
How do you calculate a divorce home buyout?
Start with equity, which is the appraised value minus what you still owe. The buyout is the departing spouse's share of that equity, a figure your settlement sets. The new loan is your current balance plus that buyout, refinanced into one loan, and the loan-to-value is the new loan divided by the value. The calculator just does that arithmetic on your numbers.
How much will my new loan be after buying out my spouse?
Your current balance plus the buyout amount. In the worked example a $200,000 balance plus a $100,000 buyout makes a $300,000 new loan, at 75% loan-to-value. The new loan is always bigger than your old balance, which is why the real question is whether you qualify for it on one income, not just whether the equity is there.
Does the buyout amount come from the calculator or the divorce settlement?
The settlement, and your attorney. The calculator does the arithmetic on a split you enter; it does not decide how the equity is divided. The division follows your settlement agreement or the court order, which is your attorney's territory. Enter the share or percentage your settlement sets, and the tool sizes the loan and loan-to-value around it.
Is the buyout treated as cash-out?
It depends on the loan program and the documented agreement. When the settlement documents the buyout, it can often be priced better than a standard cash-out, and in Texas a homestead buyout uses an owelty of partition. The mechanics and the sourced loan-to-value figures live on the buyout and owelty guides; this calculator points to them rather than restating them.
A worked example of a buyout calculation
Illustrative round numbers, not a quote, with an even equity split for simplicity (your settlement sets the actual division). They match the example on the buyout guide so the math is consistent across the cluster.
| Home value (appraised) | $400,000 |
|---|---|
| Current mortgage balance | $200,000 |
| Total equity (value minus balance) | $200,000 (an even split for the example; your settlement sets the actual division) |
| Departing spouse's share (the buyout) | $100,000 |
| New loan (balance plus buyout) | $300,000 (75% loan-to-value) |
The staying spouse keeps the home with a $300,000 new loan at 75% loan-to-value; the departing spouse receives $100,000 for their share and comes off the deed and the loan. The new loan is larger than the old balance, which is why qualifying on one income is the next question. Your value, balance, split, and program change the numbers, so treat this as a model, not a quote.
Frequently asked questions
Related guides
- Divorce and Your Mortgage (the full pillar)
- Divorce equity buyout: how it is sized and priced (the mechanics this tool estimates)
- Texas owelty lien: the homestead buyout route (the Texas loan-to-value note)
- Qualifying on one income after divorce (the next question after the math)
Sources
This calculator does arithmetic on the numbers you enter and asserts no agency figures of its own. The sourced loan and loan-to-value figures live on the cluster guides it points to: