I’d choose having a mortgage over having a partner any day. Let’s say the house is worth $120,000, and $60,000 is owed, then it would cost you $30,000 to buy him out of your half—the full market value minus the mortgage and expenses it would take to sell the place. Or, if neither of you wants the house, and then you sold it, you could split the results. That would be around $20,000 to $25,000 each after the dust settles.
If it were me, I’d either buy out the partner for $25,000 and pay off the mortgage or let your partner buy you out for $25,000—as long as they’re willing to take your name off the mortgage or get a new one completely.
Get rid of the partner, and then get rid of the debt. Both of them are trouble, but partners are an even bigger headache than debt!
* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.