I'm still back at the principle residence should definitely be included in the net worth calc., all of it, IMHO.

Simplistically here is how I think of it, 2 people #1 has 5 million in cash and stocks, no house #2 has a 5 million $ house, no mortgage, no cash, no stocks.

Some here would say 1) has 5 million net worth and 2) has 0$ net worth.

Then 1) turns around and sells all of there stocks, adds to the cash pile and buys a $5 million house. All their networth is now gone, huh?

If you do a balance sheet for both of them, they each have Assets and Liabilites and the difference is Equity or Networth. How can the house (asset) not be part of the Equity/Networth calc???

You can always sell the house, even if it takes time, or causes family anxiety etc. It's definitely part of your networth!

Postscript...you own a business, its also hard to sell and turn to cash, is it part of your net worth,...rhetorical