If I withdrew $38,500 from joint HELOC in 2016 to payoff my ex as part of our divorce settlement is the interest deductible since i used it to buy out his ownership?

[thenics1]

If I withdrew $38,500 from joint HELOC in 2016 to payoff my ex as part of our divorce settlement is the interest deductible since i used it to buy out his ownership?

[DDollar · Accepted solution]

Since you the proceeds of the HELOC were used to "buy" your ex's share of the property, I would say the interest is deductible as it was used to purchase your home.