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Divorce Buyout Agreement Template
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Divorce Buyout Agreement Template
This Divorce Buyout Agreement (the “Agreement”) is made as of [Effective Date] by and between:
Spouse A (Buying Spouse): [Full Name], address: [Address] (“Buyer”)
Spouse B (Selling/Transferring Spouse): [Full Name], address: [Address] (“Seller”)
Related Case (Optional): [Court/County], Case No. []
Related Settlement (Optional): ☐ Marital Settlement Agreement dated [Date] ☐ Separation Agreement dated [Date] ☐ Other: []
1. Asset Being Bought Out
1.1 Asset Type: ☐ marital home ☐ real estate other ☐ vehicle ☐ business interest ☐ other: [__].
1.2 Asset Description: [Address/VIN/business name + ownership].
1.3 Current Ownership: ☐ joint ☐ titled in [name(s)].
2. Valuation and Equity Calculation
2.1 Valuation Method (Select One):
☐ Appraisal by licensed appraiser dated [Date]: $[Value]
☐ Broker price opinion/market analysis dated [Date]: $[Value]
☐ Parties’ agreed value: $[Value]
☐ Other: [Method]
2.2 Liens/Loans (If Any):
Mortgage/loan balance (approx.): $[Balance] as of [Date]
Other lien(s): $[Balance]
2.3 Estimated Equity: $[Value] − $[Total Liens] = $[Equity].
2.4 Seller’s Share (%): [__]% → Buyout Amount: $[Amount].
3. Buyout Payment Terms
3.1 Payment Method (Select One):
☐ Lump sum payment of $[Amount] due by [Date]
☐ Installments: $[Amount] per month for [__] months starting [Date]
☐ Payment from refinance proceeds (common for homes) by [Date]
☐ Other: [Describe]
3.2 Payment Delivery: ☐ wire ☐ cashier’s check ☐ escrow ☐ other: [].
3.3 Interest (Optional for installments): ☐ none ☐ []% per year.
3.4 Late Payment (Optional): [Late fee/notice/cure period].
4. Transfer of Title / Ownership
4.1 Upon receipt of the buyout amount (or per agreed escrow closing), Seller will sign all documents needed to transfer Seller’s interest to Buyer, including:
☐ deed (for real estate)
☐ title transfer (for vehicle)
☐ assignment/stock transfer (for business interest)
☐ other: [List]
4.2 Recording/Filings: Buyer is responsible for: ☐ recording fees ☐ title fees ☐ transfer forms, unless otherwise stated: [__].
5. Mortgage / Loan Responsibility (If Applicable)
5.1 Buyer will be responsible for any mortgage/loan payments associated with the asset starting on [Date].
5.2 Refinance Requirement (Common for Homes):
☐ Buyer must refinance to remove Seller from the loan by [Date].
☐ If Buyer cannot refinance by the deadline, the Parties will:
☐ list the property for sale by [Date]
☐ extend deadline by written agreement
☐ other: [Plan]
5.3 Seller’s liability on the mortgage is not released unless the lender releases Seller in writing.
6. Possession and Move-Out (If Home)
6.1 Buyer will have exclusive possession of the property as of [Date].
6.2 Seller will move out by [Date] and return keys/access devices.
6.3 Utilities and expenses until move-out: [Allocation].
7. Taxes, Insurance, and Maintenance (If Home)
7.1 Property taxes, insurance, and maintenance responsibilities starting [Date]: [Buyer/Seller allocation].
7.2 Any tax consequences are the Parties’ responsibility; each may consult a tax advisor.
8. Release (Limited)
8.1 Upon full performance, each Party releases the other from claims relating to the asset and buyout covered by this Agreement, except obligations stated here.
9. Governing Law
9.1 This Agreement is governed by the laws of [State/Country].
Signatures
Buyer (Spouse A): [Full Name]
Date: [Date]
Signature: ___________________________
Seller (Spouse B): [Full Name]
Date: [Date]
Signature: ___________________________
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Divorce Buyout Agreement Template
DIVORCE BUYOUT AGREEMENT TEMPLATE FAQ
What is a divorce buyout agreement?
A Divorce Buyout Agreement is a written agreement where one spouse pays the other a lump sum or installments to buy out their share of a marital asset — commonly the family home, a business interest, or a vehicle. It details how the asset is valued, the buyout amount, how payment will be made, and what transfers are required.
When should you use it?
Use it when spouses agree that one person will keep an asset instead of selling it. This agreement can be a standalone document or part of a broader marital settlement agreement. It’s also often used with related documents like deeds, refinance agreements, or title transfers.
How do you determine the buyout amount?
Common methods include: an appraisal, a broker price opinion, agreed value, or a formula based on equity (value minus mortgage/loans). This template includes multiple options and a calculation section.
Does the mortgage have to be refinanced?
Often yes if both spouses are on the mortgage and one spouse is keeping the home. A deed alone typically does not remove someone from the loan. This template includes a refinance deadline and alternative steps if refinancing is not approved.
What should be included?
Include: asset description, valuation method, buyout amount, payment schedule, taxes/closing costs, occupancy rules (for a home), transfer documents, and mutual releases. This template includes these essentials.
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