How do we figure out each person's equity?

The arithmetic is short

Equity is three numbers. Take the price the house is likely to sell for, subtract the payoff on the first mortgage and any second loan or home equity line, and subtract what it costs to sell, such as the commission, title and escrow fees, and any repairs you've agreed to. The equity split tool does it in one screen and lets you try different prices.

It isn't a promise. It's a planning number.

Each input needs a real figure

The answer is only as good as what you type in. For price, use a market analysis or an appraisal you both trust, not a website estimate or what the neighbor's house sold for. For the loans, ask each lender for a written payoff statement rather than reading the balance off a monthly bill, because a statement printed months ago won't match the day you close.

For costs, use the fee in your listing agreement and the title company's estimate. I send both of you the same estimate at the same time, so you start from one set of numbers instead of two.

Then check it twice.

The split is a legal question

Knowing the equity doesn't tell you who gets how much. Under ORS 107.105(1)(f), an Oregon court divides property as may be just and proper in all the circumstances, starts from a rebuttable presumption that both spouses contributed equally to property acquired during the marriage, and considers reasonable costs of sale and taxes. Down payments from before the marriage, payments made after separation, and credits for repairs are all things your attorneys may argue about.

That's their job, not mine. Who decides how the proceeds are split? covers it, and for the tax side see the $500,000 exclusion after divorce.

When the numbers change

Equity moves while the house is on the market. If the price drops, if a buyer's inspection leads to a repair credit, or if another month of interest accrues on the loan, the figure you started with is no longer the figure at closing. That's normal. Rerun the tool whenever one of those inputs changes, and make sure you're both looking at the latest version rather than the one each of you saved on your own phone. I send both of you the same updated estimate whenever an offer changes the math.