<prompt> Human: We bought our house a few years ago and it has appreciated in value. We owe 171K and its been appraised at 230K. I owe her about 9K for the down payment and other random things. She wants to buy me out and stay in the house. She is in the process of getting a refi set up so that the mortgage will be in her name, which will free me up to purchase another property through FHA.Here is the situation:Purchase price: 186K 3.25 30 yr fixed mortgageOriginal down payment: 8,481 she covered all this, but it should be split between the two of usRemaining mortgage: 171,112For down payment I owe her: 3,407 Misc expenses I owe her: 1,486The way I figure: to calculate the amount she would need to pay me, it would involve taking the difference of the appraisal value and what we currently owe, dividing it in two, then subtracting the amount I owe her. Is that right? What other issues are there that I should consider? How do I avoid paying capital gains on the amount shell pay me?EDITED: to add more detail, and correct a number I had wrong  <response>: The way I figure: to calculate the amount she would need to pay me, it would involve taking the difference of the appraisal value and what we currently owe, dividing it in two, then subtracting the amount I owe her. Is that right? What other issues are there that I should consider? How do I avoid paying capital gains on the amount shell pay me? Thats a good way to calculate buyout. Typically you dont owe capital gains on the sale of a primary residence. 