What is meant by equity in my home?

What is meant by equity in my home?
Equity is the difference between the value of the home and the amount owed in mortgages against the property.
For example, if the first mortgage is $50,000 and the second mortgage from a home equity loan is $10,000, the total debt owed against the house is $60,000. If your home is valued at $100,000, the equity in your home is $40,000. The $100,000 value less the $60,000 in mortgages equals $40,000 in equity.
If one of the parties remains in the home, that party must figure out how they will pay the other party their share of the equity.