Dumb finance question

[explorer76]

A guy at work is getting divorced. NYS is an equitible distribution state meaning that everything is split 50%. A couple of us were talking about his case during lunch. One of the spouses wants to buy-out the house from the other. I have a dumb finance question pertaining to that.

Let's say their house is upside-down. Say they owe $200k but the house is worth $150k. Wouldn't the buy-out value be half of $150 minus the remaining balance that is due? So...

Outstanding debt is 200k - 150k = 50k
Equitible share of debt on house is therefore 25k
Half of house current value is 75k
So then the balance is 75k - 25k = 50K.

So wouldn't the buyout value be $50k?

[flea]

I would think you'd share the value as well as the debt, meaning your share would be 100K.

[suhr_rodney]

I'm not a lawyer or NY expert. My opinion is the negative equity of $50k would be included as a liability when computing the couple's net worth.