When you tear out and rebuild your shower walls you are left with a transition between the old, existing drywall and the new stuff – cement backerboard or drywall (if you’re using kerdi). Whaddya do with it? And how do you do it? And why am I the one asking questions – that seems backwards.
If at all possible, when you remove the old stuff you want to cut a straight line down the drywall to make for a clean transition. If it isn’t straight or was simply torn out without any regards to actually rebuilding it, then find a spot where you can cut a straight line from top to bottom. You want to have a level line for your transition.
So before you begin you want something similar to that horrible graphic right there I just created with a bottle of scotch and my toes. The left side is looking into the wall cavity with one stud, that big brown looking thing? Yeah, it’s supposed to be a wall stud. You are not allowed to give me crap about my lack of Photoshop skills!