When you are divorced, when should we sell the marital home? If the parties have already divorced, the divorce decree specifies who is entitled to the marital home. That person is free to use it anyway they like. The assets are kept frozen during the divorce. Assets cannot be moved. Asset sales are not permitted unless the court gives permission. You are unable to sell it on your own. Can you sell your home during a divorce if both parties agree to do so? How do you know when to sell the marital home in a divorce?
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The court can enter an order to sell the marital home. A compelling reason might drive the urgency to sell now. A strong market might be too good to pass up. An offer to buy might dissipate if you wait until the divorce is finalized. The money from the sale can be put into trust. Place in the account of any of the lawyers. The court has the authority to keep the money until property distribution. There are still expenses to be paid. Debts to be settled. Speak with your lawyer to learn more.
How does the court decide who gets the marital home in a divorce?
Michigan courts want to be fair. They strive to be equitable. It does not always translate to a 50/50 split. In a marital home, emotions can be involved. The underlying motivation to sell or not will not only be money. The courts have considerations in the determination of equitable division of assets. There are factors at play. Some of these key factors include:
Contributions to the Marriage.
The court assesses each spouse’s contributions. In most families, the marital home is the biggest asset. Each spouse may have a hand in the acquisition. Took part in the preservation of marital assets. The court sees who contributed to the appreciation of value. The court factors in non-monetary contributions. It looks at homemaking and childcare. The court looks into the support given to the other spouse’s career.
Length of the Marriage.
The longer the marriage the more intertwined are the financial and emotional ties. Couples married for long years may have built their lives together. They shared resources. Made joint investments. That includes purchasing a marital home. The court aims to preserve stability for both parties. More so if they have become accustomed to a certain standard of living. A usual consequence of a lengthy marriage. Michigan follows the principle of equitable distribution. The court aims for an equal division of marital assets. The marital home is included in longer marriages. This means that assets are divided fairly but not necessarily equally. The court often leans towards a more balanced division. More so when the marriage has endured for an extended period. The goal is a fair outcome reflecting the contributions of both parties. The sacrifices made throughout the course of the marriage. Spouses in long-term marriages have time. They accumulate assets. They buy real estate properties like the marital home. With longer marriages come more opportunities. Both parties have chipped in for the down payment and mortgage payments. Each contributed to home improvements. The court acknowledges the shared nature of these investments. It seeks to ensure a fair division of the assets jointly accumulated over time.
Custody of Minor Children.
Michigan courts are biased toward protecting the interests of children. They will go for preserving stability for children. Stability will mean allowing the custodial parent to be with the children. Keep them in the marital home. The court will also consider the children’s educational needs. The children may already be in a good school district. Keeping the children in the same community guarantees continuity of education. Children may have already formed bonds of friendships.
Any Prenuptial or Postnuptial Agreement.
Prenuptial agreements are common in Michigan. Postnuptial agreements are not as common but they are effective. These agreements have provisions addressing the division of assets. These often include the marital home. A valid agreement can influence the court’s decision. The provisions of such agreements must meet Michigan’s legal requirements. These agreements must be in writing. They must be signed by both parties. They must be witnessed by two people not related to either party. The agreement must also be fair. It must be equitable. These agreements can prove to be valuable tools for married couples. It protects assets in the event of a divorce.
Tax Implications.
There are always tax consequences associated with the division of assets. That includes taxes on the house. You have to pay capital gains taxes. There are other tax implications. Such tax matters arise from transferring ownership of the property. The seller is liable for capital gains taxes when a property is sold. Capital gains tax is based on the difference between the purchase price and the sale price. Capital gains taxes are owed after the sale of the marital home in Michigan. It will be split between the spouses. This is regardless of who actually sells the property. The marital home is considered marital property. Both spouses are owners of the property. They are so even if only one spouse’s name is on the title.
Michigan courts try to be fair and equitable in distributing marital assets. They take things into consideration. It doesn’t always translate to an equal division. They consider contributions made by each spouse. It considers the length of the marriage. The court has always been looking after children. It decides accordingly in the children’s best interest. There are also agreements to consider. Prenuptial. Postnuptial. Couples must also consider the tax implication of selling the marital home. The responsibility for paying taxes is also decided by the court.
Who gets to stay in the marital home while the divorce is progressing?
A married couple does not have to live apart in separate residences before getting a divorce in Michigan. This has the effect of allowing the parties to cohabitate before the divorce is finalized. This will be the situation up until the assets are distributed. If you keep your children in the same house, staying will promote more stability. It’s also a chance to get the house assessed and inspected before selling.
Financial expediency.
Being together in the same house allows both partners to set aside some cash. And prepare a budget for their future independent living arrangements. This is the house you and your husband shared while married. Your spouse might want you to move. There may be times when you feel as though your spouse is attempting to evict you from the home. Or your spouse has taken formal action to do so already. Living together in the same home gives both couples the opportunity to save money. A moment to create a spending plan for their future independent living circumstances.
The right to the marital home.
You and your husband lived in this home together while you were married. You can be asked to move by your spouse. You could occasionally feel as though your spouse is trying to kick you out of the house. Or your spouse has already taken official steps in this direction. The right of both spouses to remain, occupants of the marital home, is protected by law. The marital home is your legal residence. You can both stay there until the judge rules otherwise. The act of “kicking out” a spouse is unlawful. You shouldn’t be taking actions like taking their possessions. The locks on the house’s doors shouldn’t be altered. If you behave in this way, your spouse can call the police to get the house keys back.
Can you sell the marital home when everything is “frozen” by a court order?
Opportunities come along to sell the marital home at a better price. You’re considering selling the marital home now. There are exceptions to the “freeze” order of the court. You should speak with an experienced family law attorney. Your attorney can help you. Determine if the exception applies to the sale of the home. Your attorney can help you navigate the process of selling the home while a freeze order is in place.
Restraining orders.
A court order can “freeze” assets. We call that a restraining order. A restraining order is often issued in a Michigan divorce case. It prevents the transfer of marital property without the other spouse’s consent. Courts have reasons for issuing a restraining order. One reason is to protect the interests of the children.
Protecting children and the dependent spouse.
You made the decision to buy a house for your marriage in a desirable neighborhood. Your children are content there. The children should remain there since it’s in their best interests. Until children graduate from school, a restraining order can stop the house from being sold. There is yet another justification for a court to grant a restraining order. The interests of one spouse may be something the court wants to protect. One spouse might be dependent on the other spouse. Up until the spouse becomes independent, they are allowed to live in their own home.
Things to remember about restraining orders.
You’re thinking of selling your marital home while a restraining order is in effect. Hold that thought. Bear the following in mind:
- The restraining order can cover other assets as well or only the sale of the house.
- The restraining order could be either permanent or temporary.
- Changing the restraining order is possible.
- A restraining order violation could result in you being found in contempt of court. It may lead to penalties like fines, jail time, or both.
Weigh all the risks. Reflect on the benefits when you consider selling the marital home. Speak with an attorney after your reflection.
What are the key considerations when selling a marital home in a divorce with minor children?
There’s one thing physically keeping a family together. It tends to be the most important asset of a household. The marital home. It is where the children find a haven. It ensures stability. Creates a sense of well-being. It is the reason selling the marital home is a decision ripe with emotion. Here are some of the key considerations:
The children.
We build a family. We build a home. The cornerstone is children. They keep everything in perspective. Almost always, the most significant things in our lives are created at home. Our children’s character is developed at home. It makes sense that the court would want stability. It wants to make sure the children’s lives are not disrupted by the loss of their homes. The court will take into account the following issues in this case:
- The age of the children. The sale of the house will have an impact on younger children. compared to older kids. Younger children feel a strong attachment to their homes. They resided there for the entirety of their lives. They feel connected to it. The neighborhood even. Younger children won’t comprehend the rationale for the sale. They will feel a sense of loss. A sense of displacement. They will struggle to understand. Children will be perplexed. Filled with emotions of sadness and rage. They might need to move to a new house, meet new people, and get used to a new school.
- The school district. The children have started school. They are registered in a particular school district. The judge puts a break on selling the house. They sell the house which means they move. The children move. So school will change too. It’s possible that the children are doing well in their present setting. They might have gotten along. They take part in extracurricular pursuits actively. They can perform well in academics. Children may experience disruption when switching schools. They may find it challenging to settle into a new school. The children’s education may be affected by switching schools. In a new school, children might have to start from scratch. They will start off with new teachers. Get to know new classmates.
- The children’s relations. The candidness. Their spontaneity. Their honesty makes children easy to relate to. They get along quickly. Build friendships. As grandparents, uncles, and even godparents we love them easily. This affection binds us with children. And them to us. We spend time with them nurturing the bonds. When families are in the same neighborhoods these bonds grow stronger. Their proximity strengthens relationships. When a family leaves, there’s a sense of loss. There is a void created. It disrupts a family’s daily fabric. When a parent sells the house, it is not just a home we lose. The children lose a whole fabric of relationships.
- The financial impact on the children. You have children depending on the marital house for their financial security. You’re thinking about selling it. Reflect on how this might affect the children. The children may still be too young. They won’t be able to support themselves. You might wish to postpone selling the house. Keep the children in the same home. Ensure continued financial security. You might want to think about selling the house to a family with children.
The financial situation of the spouses.
Divorce disrupts the way of life of spouses. It does the same thing to children’s lives. The financial burden that heightens after divorce makes it even harder to start over. The court would not want to add up those difficulties. This is the reason the court goes slowly with the sale of the marital home. Both spouses may consent to liquidate the marital home. One spouse may not be able to buy out the other’s share of the equity. The court will be forced to order a sale of the house. The court tries to be aware of the financial circumstances of each spouse. It is the way to fair and equitable division.
The wishes of the spouses.
Couples have always the option to come together. Find common grounds. Come to a mutual understanding. They can agree on who gets the marital home. The court often will agree to their decision. As long as it is fair to all parties it will be acceptable to the court. The court believes parties will abide by a ruling based on their own prior agreements. Take some more tips for considering the wishes of your spouse on selling a marital home:
- Talk to your spouse about their wishes. Understand why they want to keep the home. What does it mean to them?
- Consider your own wishes. Why do you want to keep the home? Why do you want to sell it?
- Be willing to compromise. Be open to negotiating. You might be able to come to a solution. A practical one that is acceptable to both of you. It only works if you are both willing to do so.
- Get professional help. Get a mediator. Talk to an attorney. Their objectivity can give you a better perspective.
Both partners may find it difficult to sell a marital home. Everyone engaged experiences stress as a result of it. Know what the court will take into account. Be open to negotiating. Everyone can benefit from a slight improvement in the procedure. There’s still a chance that the partners will disagree. The above-mentioned considerations will be used by the court to make its conclusion.
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