With respect to the division of equity in a unit jointly owned by two people, your methodology for division can work assuming both parties agree to it. However, the best way to divide the equity in such a home is to caluclate what it is presently worth and subtract the amount of the loan on it and then divide by two.Then, debits and credits are made as to the gross amount of equity based upon moneys that each of the two owners contributed to the unit such as down payment, property taxes, upkeep and the like to further equalize the division into a net amount where the amounts to be allocated both parties most likely will not be equal.