Can I Be Forced To Sell My House In A Divorce?
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Learn more about marital home and divorce.
One of the most difficult issues for the parties to resolve is how to handle the marital house. A married couple’s marital house is often one of their most valuable assets. Furthermore, there are frequently sentimental considerations involved. In some cases, one party may think that they were the one who contributed the most towards purchasing or developing the property. In other circumstances, one spouse may wish to keep the house so the children can remain in the same school and have a secure environment.
Do You Have to Sell Your Marital House?
In most circumstances, you will not be forced to sell your house during a divorce. If you’re divorcing in Michigan, the question of whether or not you have to sell your house often arises since spouses develop attachments to certain parts of the house. As a parent, you may prefer that your children complete their education in the same school or district where you live. When this happens, usually one spouse will “buy out” the other spouse’s share of the home. To calculate equity, the courts will take the assessed value of the property and subtract all loans on it, such as mortgages and tax liens. After that, whoever keeps the house owes the other spouse half of the equity.
Most of the time, the court won’t count a real estate agent’s commission when figuring out how much the home is worth. Unless a sale is close, Michigan family courts have consistently held that a commission should not be included in the appraisal because it is too subjective. This means that if you’re going to keep the marital house, you’ll have to pay the entire commission when you sell it. That’s a significant profit for the spouse who doesn’t keep the house and a huge price to pay for the spouse who does because they’ll have to pay the entire commission rather than half of it.
How the Courts Will Handle Your Marital House
When splitting marital assets, like the house, the court has several options. Occasionally, the judge will give the marital home to one of the spouses. That spouse will then have to refinance the loan to pay the other spouse his or her share of the equity and get the other spouse off the hook for the mortgage.
If neither spouse can refinance for a higher mortgage, the court may order to sell the house and split the equity. Even if both spouses wish to keep the house or cannot agree on its value, the judge may nevertheless order its sale.
Let Our Michigan Divorce Lawyers Help In Keeping Your Marital House
Each divorce is unique and presents its own set of obstacles. Regardless of your circumstances, if you wish not to sell your marital house, contact Goldman & Associates to design a divorce strategy. Set an appointment for a free consultation today.