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Why This Matters: Going through a divorce is hard. One big question many people have is about their home. Can you stay in the house you shared? It’s a place with memories, maybe where kids grew up. This guide helps you understand what might happen with your house in a Michigan divorce.
Do People Want to Stay in the House After Divorce?
Feelings About the House: Yes, many people want to stay. The house feels familiar. It might be where they raised their children. They feel attached to it and don’t want to leave just because of the divorce. Staying feels safe and normal during a big life change. Opposite Feelings: But, some people feel differently. The house might hold bad memories or sad feelings. They want a fresh start somewhere new. Leaving the house can feel like moving forward. Both feelings are okay and very common. Reasons to Stay:
- Children’s Stability: Keeping kids in the same home and school.
- Sentimental Value: Strong emotional ties to the house.
- Familiar Area: Knowing the neighbors and community.
Reasons to Leave:
- Bad Memories: The house reminds them of unhappy times.
- Fresh Start: Wanting a completely new environment.
- Financial Ease: Selling might be easier than buying out the spouse.
Real-Life Example: Sarah wanted to stay in her home after the divorce. Her kids loved their school nearby. But the house also reminded her of arguments, so she felt unsure.
What’s the Most Important Thing If I Want to Keep the House?
Agreement is Key: If you want to keep the house, the first big step is agreement. You and your spouse need to agree on this. If you both agree that one person stays and pays the other, the court usually accepts it. Having a plan helps a lot. Making a Plan: This plan needs details. How will you pay your spouse for their share? When will they move out? This is sometimes called an exit strategy. You need to show the court you have thought this through. The Michigan Divorce Attorneys at Goldman and Associates can help make this plan clear. Steps for Agreement:
- Talk to Your Spouse: See if you can agree on who keeps the house.
- Figure Out Value: Know how much the house is worth and the equity (value minus debt).
- Plan the Buyout: Decide how one person will pay the other their share.
Things Courts Like to See:
- Clear Buyout Terms: How and when the payment happens.
- Refinancing Plan: Proof the staying spouse can get a mortgage alone.
- Signed Agreement: A written document showing you both consent.
Real-Life Example: Mark and Lisa agreed Lisa would keep the house. They wrote down that Lisa would refinance the mortgage in her name only. She would also pay Mark his share of the equity within 90 days.
What Happens if We Both Want the House?
The Court’s Usual Role: Courts handle disagreements. If both you and your spouse want the house and can’t agree, the court steps in. Courts often prefer to sell assets and divide the money. They are like businesses that liquidate, or sell off, things. Splitting the Baby: Think of it like this: if the house has $100,000 in equity (value after paying the mortgage), the court will likely order it sold. After selling costs, you might each get $50,000. The court usually won’t pick one person over the other if you can’t agree. When Disagreement Occurs:
- Court Intervention: The judge makes the decision about the house.
- Valuation Needed: The court will likely order an appraisal to find the value.
- Sale is Likely: Selling the house is the most common outcome.
Court’s Priorities:
- Fairness: Dividing marital property fairly between both people.
- Finality: Ending the financial ties related to the house.
- Avoiding Conflict: Selling avoids future fights about the house.
Real-Life Example: Both David and Karen wanted their family home. They could not agree. The judge ordered the house to be sold, and they split the money after the sale.
Can the Court Let One Parent Stay Until Kids Turn 18?
Is This Common?: Usually, no. It’s not likely that a Michigan court will order one parent to stay in the house for many years until the children finish school. The court prefers to settle property issues during the divorce, not keep them going. Why Courts Avoid This: Courts want to finalize the division of assets. Letting one person stay ties up the other person’s money (their share of the house equity). This can cause problems later. Selling allows both people to get their share and move on financially. Factors Courts Consider:
- Financial Entanglement: Keeping the house delays separating finances.
- Future Changes: Life changes, making long-term orders hard.
- Clean Break Principle: Courts aim for a clear end to the marriage ties.
Alternatives to Staying Long-Term:
- Buyout: One spouse buys the other’s share now.
- Offsetting Assets: Trading house equity for other assets (like retirement funds).
- Selling and Splitting: Both spouses get funds to find new housing.
Real-Life Example: Maria asked the judge if she could stay in the house until her youngest child turned 18. The judge explained that this was unlikely. They decided to sell the house instead so both parents could buy new homes.
Are There Special Cases Where Someone Might Keep the House?
Yes, Exceptions Exist: Sometimes, the court makes exceptions. A big reason might be if a child has special needs. Maybe the child is disabled, and the house is already set up for their needs, like having ramps or special equipment. Why This Matters: Moving could be very hard for the child. Finding a new house and making it suitable (retrofitting) would be difficult and costly. In such cases, the court might focus on the child’s stability over immediately selling the house. Watch our video for more details on keeping the house. Situations for Exceptions:
- Child with Disability: House is specially equipped for the child’s needs.
- Extreme Hardship: Proving moving would cause unusual difficulty.
- Parental Agreement (Unique):** Sometimes parents agree on unique nesting arrangements.
Court’s Focus in Exceptions:
- Child’s Best Interests: Prioritizing the child’s well-being and stability.
- Feasibility: Whether the arrangement is practical long-term.
- Fairness to Both Parents: Trying to balance the child’s needs with parents’ rights.
Real-Life Example: The Chen family had a child who used a wheelchair. Their house had ramps and a special bathroom. The judge allowed Mrs. Chen, who had primary custody, to stay in the house with the child, arranging a different way to handle the equity later.
What if the House Has Lots of Sentimental Value?
Does Sentiment Matter to the Court?: Not usually in the way you might hope. While the court understands houses hold memories, like marking kids’ heights on a wall, that usually isn’t enough reason to award the house to one person if you can’t agree. Equal Attachment Assumed: The court often assumes the sentimental value applies to both people. Or, maybe it doesn’t apply strongly to either. Since feelings are hard to measure and often shared, the court focuses on the financial side – the equity and how to split it fairly. Why Sentiment Isn’t Decisive:
- Subjectivity: Feelings are personal and hard for courts to weigh.
- Fairness Focus: Courts prioritize fair division of financial value.
- Potential for Conflict: Using sentiment could lead to more arguments.
What Courts Prioritize Over Sentiment:
- Equity Value: The actual monetary worth of the house share.
- Ability to Pay: Can one spouse afford the house alone?
- Agreement: Whether the parties reached their own deal.
Real-Life Example: John told the judge he should get the house because he built the deck himself and his father planted the big oak tree. The judge acknowledged the memories but said that without an agreement, the house’s financial value had to be divided, likely by selling it.
How is House Equity Divided in a Michigan Divorce?
What is Equity?: Equity is the value of your house minus any money you still owe on it (like the mortgage). If your house is worth $300,000 and you owe $200,000, you have $100,000 in equity. This equity is usually considered marital property if gained during the marriage. Fair Division: Michigan is an “”equitable distribution”” state. This means marital property is divided fairly, which often means equally (50/50), but not always. The court looks at many factors. If the house is sold, the equity (after selling costs) is typically split between the spouses. Understanding how property is divided is important. Steps in Equity Division:
- Valuation: Determine the house’s current market value.
- Calculate Debt: Subtract mortgage balance and any liens.
- Determine Split: Decide how the net equity will be divided (often 50/50).
Factors Affecting the Split:
- Length of Marriage: Longer marriages often see more equal splits.
- Contributions: Who paid the mortgage or improved the house.
- Other Assets: The house split might be adjusted based on other property.
Real-Life Example: A couple owned a house with $80,000 in equity. They agreed to sell it. After paying the realtor and closing costs ($10,000), they had $70,000 left. They each received $35,000.
What if One Spouse Owned the House Before Marriage?
Separate vs. Marital Property: Property owned before the marriage is often considered “”separate property.”” Usually, separate property isn’t divided in the divorce. However, things can get tricky with houses. Commingling and Increased Value: If the house value increased during the marriage, that increase might be marital property. Also, if marital funds (money earned during the marriage) were used to pay the mortgage or improve the house, the non-owning spouse might gain an interest in it. This concept relates to how inherited property might be treated in divorce. Determining Separate Interest:
- Initial Value: What the house was worth at the time of marriage.
- Contributions: Were marital funds used for upkeep or payments?
- Value Increase: How much did the value go up during the marriage?
Potential Outcomes:
- Reimbursement: Original owner gets back pre-marital equity.
- Shared Increase: Increase in value during marriage is split.
- Full Marital Asset: In some cases, the whole house might be treated as marital.
Real-Life Example: Ken owned his house before marrying Sue. It was worth $50,000 more when they divorced. They used marital money to pay the mortgage for 10 years. The court decided Sue was entitled to a share of the increased value and the equity paid down during the marriage.
Who Pays the Mortgage During the Divorce Process?
Temporary Orders: While the divorce is happening, who pays the bills? Often, a judge will issue temporary orders. These orders say who lives in the house and who pays the mortgage and other house bills until the divorce is final. This is common in a contested divorce where parties disagree. Maintaining Status Quo: Usually, the goal is to keep things stable, especially if children are involved. The person living in the house might pay, or the higher-earning spouse might be ordered to pay. These payments might be credited later when assets are finally divided. Common Temporary Arrangements:
- Spouse in House Pays: The person living there covers the mortgage.
- Higher Earner Pays: One spouse covers costs based on income.
- Shared Payments: Both contribute to the mortgage temporarily.
Importance of Payments:
- Credit Protection: Avoids missed payments harming credit scores.
- Prevent Foreclosure: Keeps the house from being lost to the bank.
- Orderly Process: Ensures bills are paid while the case proceeds.
Real-Life Example: During their divorce, Amy stayed in the house with the children. The judge ordered Ben, who earned more, to continue paying the mortgage temporarily. This payment was considered when they later split their assets.
What Are the Options Besides Selling or One Person Keeping It?
Other Ways to Handle the House: Selling or one person buying out the other are common, but not the only ways. Sometimes, couples find other solutions that work for their specific situation. Thinking creatively can help, especially with legal guidance. Unique Arrangements: Options might include keeping the house as a rental property owned by both. Or, agreeing to sell it later, perhaps when the housing market improves or when a child reaches a certain age (though court orders for this are rare without agreement). Some parents even try “”nesting,”” where kids stay in the house and parents rotate in and out. Alternative Solutions:
- Co-Ownership Post-Divorce: Keeping the house as an investment property.
- Deferred Sale: Agreeing to sell the house at a future date.
- Nesting Arrangement: Parents rotate living in the home with the children.
Considerations for Alternatives:
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- Complexity: These options require detailed agreements.
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- Ongoing Ties: Requires continued cooperation with your ex-spouse.
- Financial Risk: Market changes or shared costs can cause issues.
Real-Life Example: Rather than sell immediately in a slow market, a couple agreed to rent out their house for three years. They split the rental income and agreed to sell it and split the proceeds after the three years ended.
Extra Insights
Refinancing Challenges: If you agree to keep the house and buy out your spouse, getting a mortgage in just your name (refinancing) can be tough. Lenders look at your income alone. It’s vital to see if you can qualify for a refinance early in the process. Tax Implications: Selling a house can have tax consequences, like capital gains tax. Buying out a spouse usually doesn’t trigger taxes immediately, but how you structure the buyout matters. Always talk to a financial advisor or tax professional about your specific situation.
Frequently Asked Questions (FAQs)
1. Do I have to move out during the divorce? Not necessarily. Often, temporary orders decide who stays in the house while the divorce is pending. 2. Can we just agree on who gets the house? Yes, absolutely. If you and your spouse agree, the court will usually approve your agreement. 3. What if we disagree on the house’s value? The court will likely order a neutral appraisal. This helps set a fair market value. 4. Does it matter whose name is on the deed? It matters, but it’s not the only factor. If it’s marital property, it’s usually divided fairly regardless of whose name is on the deed. 5. What happens to the mortgage? The mortgage must still be paid. The final divorce decree will state who is responsible for it or if the house must be sold or refinanced. 6. Can I force my spouse to sell the house? If you can’t agree, you can ask the court to order a sale. This is a common outcome in disagreements. 7. What are “”costs of sale””? These are expenses like realtor commissions, closing costs, and transfer taxes. They are deducted before splitting the equity. 8. Can I use other assets to keep the house? Yes. You might trade your share of retirement accounts or other assets for your spouse’s share of the house equity. 9. What if the house needs repairs? Who pays for repairs during the divorce can be decided by temporary orders. Repair costs might also be factored into the final equity split. 10. Does domestic violence affect who gets the house? It can influence temporary orders about who lives there. It might also be a factor the court considers in the overall settlement. 11. What is an appraisal? An appraisal is an expert’s opinion of the house’s market value. Courts often rely on these in divorce cases. 12. How long does it take to deal with the house in a divorce? It varies greatly. If you agree quickly, it’s faster; if you disagree and need court intervention or have to sell, it takes longer.
Need Help with Your House in a Divorce?
Get Legal Advice: Figuring out what happens to your house is a big part of divorce. Every situation is different. Talking to an experienced lawyer can help you understand your options. Contact Us: If you have questions about keeping your house or other Michigan family law issues, reach out to Goldman and Associates. We can discuss your specific case and help you plan the next steps. Call or text us today at (248) 590-6600 for a free consultation, or visit ChooseGoldman.com to schedule online.
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Meta Title: Can You Keep the House in a Michigan Divorce? | Goldman & Associates
Meta Description: Learn if you can keep your house in a Michigan divorce. Understand court decisions, equity splits, and agreement importance. Get help from Goldman & Associates.
Keywords: keep house divorce michigan, divorce property division, marital home divorce mi, selling house divorce michigan, choosegoldman
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