Getting out of joint real estate ownership in a divorce.

Note that I am not licensed to practice in your state.

Technically what you do is: The 4 of you will deed the house to the remaining 3.

In terms of how the settlement of the money will play out, that depends on your divorce decree. If there's equity, they can pay you or maybe you'll just deed the house to them and walk away because you're getting alimony or...etc. There's so many factors that go into it that we won't be able to give you advice that precise. If you have a divorce attorney, they will know what to do. If you don't, perhaps you should retain one so that they can sort out the financials for you.

You will probably want to negotiate a "buy out" of your interest in the property. The property should be valued as close to the time that you will receive your share, since the market has experienced a downturn. In NJ, there is caselaw that rejects the notion that a "hypothetical real estate commission" should be deducted when calculating your equity. Thus, if you are the one who is bought out, which seems to make the most sense, you will technically benefit from not losing the 5 to 6% commission and other closing costs. If your name is also on a mortgage, you will also want to specify in your divorce agreement that you will be removed from the mortgage obligation as well. If the other owners refinance the mortgage to pay you your share, this will solve the problem.

In your property settlement agreement with your husband, you could agree that he buys out your 1/4 interest in the home leaving him with 1/2 and his parents each with 1/4. However, if he is unable or unwilling to buy you out in the divorce proceeding, you can initiate a seperate action in the Chancery division for partition. In that case, the Court, being a Court of equity, could resolve the ownership interest in any number of ways. First, the Court could hold an auction between all of the parties with the highest bidder getting the property and buying everyone else out. Second, the Court could order the property be sold on the open market. Third, the Court could order a sheriff's auction of the property after which the proceeds would be divided among the owners. As you can see, you have a number of options at your disposal. I would, however, recomend you speak with a lawyer.