ed and Sam jointly own their home, when Sam defaults on a student loan. To determine if Sam is insolvent, how will the home play into the calculation.

1. The home is not considered since it's jointly owned.
2. Sam must use 100% of the home value as an asset and 100% of its debt as a liability.
3. Sam must use 50% of the home s value as an asset and 50% of the homes debt as a liability.