In Michigan, courts use “equitable distribution” to divide marital property. This means the division is fair, but not always equal. When splitting major assets like a home, the court looks at each spouse’s ability to maintain the property and whether children factor in.
Buyout Options
The spouse who wants to keep the home may buy out the other’s share. This can involve refinancing the mortgage or offering other assets to equalize the division of property. The person who stays in the house usually has to get a loan in their own name, which could mean showing proof of enough income and reliability. The buyout amount should also be equal to the home’s present market value minus any existing mortgage balance.
Selling the Home
In some cases, both parties agree to sell the home and split the proceeds, especially if neither can afford it alone. This choice is common when there is a lot of equity in the home and both people want to use the money for their own plans. The court usually splits the sale funds according to the property division agreement or court order. Both parties must pay any remaining mortgage and closing costs before dividing the money.
Deciding the home’s future
Making decisions about the marital home and property division during a divorce can be complex, but it’s an important step in moving forward. Each spouse must carefully consider their financial situation and future needs when deciding the best course of action. Finding a solution that allows both parties to move on with financial security and peace of mind is key to navigating this transition smoothly.