Do you plan to sell the house if you divorce? For some reason I thought it was your house and she moved in when you married. In that case I would think that she is only entitled to half of the equity accrued during that period. Do discuss this with your lawyer.

I think your answer is fine but be aware that she may still balk at your observations just because they come from you (even though everyone knows about the current state of the real estate market).

If you love somebody, set them free.
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