How is home equity estimated during divorce?

Which value?

• Appraisal — a licensed appraiser's formal opinion; the strongest basis and often worth the fee when a buyout depends on it.
• Comparative market analysis — a real-estate professional's estimate from comparable sales; useful, faster, not an appraisal.
• Online estimates — automated models with real error ranges; a starting point, not a settlement basis.
• Assessed/taxable value — a taxation figure that may sit far from market value; generally the wrong tool for this job.

Which debts and costs?

Payoff quotes for the first mortgage, any HELOC (open lines should be counted and closed, not just paid down), tax liens, judgment liens, contractor liens, HOA balances, and recorded improvement financing such as solar. If the scenario involves selling, commissions and closing costs — often several percent of the price — plus likely repairs belong in the estimate too. Title work is how the forgotten items get found.

Equity is not automatically halved

Michigan divides marital property equitably, which the parties or the court work out case by case — separate-property claims, contributions, offsets, and the rest of the settlement all matter. Treat any equity number as an input to that conversation, not its conclusion.