Since Petitioner will receive the property there are a number of different options to divide the equity with Respondent.
(1) Respondent will not receive anything. The judge will only consider this option if it is fair. For example, if there is no equity in the property, then it is fair that Petitioner will receive all of the property and Respondent will receive nothing because what Petitioner is receiving has no value.
(2) Respondent will receive other property of equal value. If you choose this option, the following language will be included in your divorce papers:
Petitioner shall receive sole and exclusive ownership of this property. Respondent shall not receive any equity from this real property but shall receive the following instead: (You will supply this information. For example, if Respondent had a 401K valued at $150,000 you could write: "Respondent's 401K valued at $150,000")
(3) Respondent will receive a lien against the property for one-half of the equity existing in the property at the time of the divorce. If there were $100,000 in equity in this property and you were to choose this option, your divorce papers would contain language similar to the following sample language:
Petitioner shall receive sole and exclusive ownership of this property. Respondent shall receive a share of the equity existing in the property at the date of the entry of the Decree of Divorce. The parties agree that the equity at date of the divorce is $100,000. Respondent's share is $50,000. Respondent shall sign a Quit-Claim deed to Petitioner at the time the divorce is entered, but shall retain an equitable lien against the property in the amount of $50,000. Upon Petitioner paying the equitable lien amount Respondent shall sign a second Quit-Claim deed removing the lien from the property.
Be sure to include the proper language in your quit claim deed for the lien. For example:
Grantor ____________________ (Respondents's name) retains a lien against the above described real property in the amount of $_____________ until such time as grantee _____________________________ (Petitioner's name) pays to grantor __________________________ (Respondent's name) the sum of $_________________ which represents that portion of the property awarded to grantor _______________________ (Respondent's name) by the court in the parties’ Decree of Divorce, ______________________ (case title, ie Jones v. Johnson) __________________________________ (court name, ie Third District Court, Salt Lake County, Utah) ________________________ (case number).
(4) Respondent will receive a lien against the property for an amount different than one-half of the equity existing in the property at the time of the divorce.
Be sure to include the proper language in your quit claim deed for the lien. For example:
Grantor ____________________ (Respondents's name) retains a lien against the above described real property in the amount of $_____________ until such time as grantee _____________________________ (Petitioner's name) pays to grantor __________________________ (Respondent's name) the sum of $_________________ which represents that portion of the property awarded to grantor _______________________ (Respondent's name) by the court in the parties’ Decree of Divorce, ______________________ (case title, ie Jones v. Johnson) __________________________________ (court name, ie Third District Court, Salt Lake County, Utah) ________________________ (case number).
(5) You can write your own customized provision.