The equity is the sum left after deducting the mortgage, and costs of sale (estate agents and solicitors) from the value of the property. Sometimes there are other costs to be deducted as well, such as an early redemption charge for the mortgage or Capital Gains Tax. When agreeing the value of a property for the purpose of negotiation in divorce it is usual to deduct the potential costs of sale even if the property is not to be sold and these are often set at 3% of the value of the property.