Often, a Michigan couple’s family home is among their most valuable pieces of property.
If they are divorcing, there might also be a lot of emotions surrounding the home, particularly when the couple raised children in it or have lived there for a long time.
Like other property, most of the time, the family residence is divided in a way the court sees as fair, unless the couple can reach an agreement. One possible exception can arise if one of the spouses was given or inherited the home.
Practically speaking, which spouse will keep the home depends on several considerations:
- It costs money to pay the mortgage and property taxes as well as the utilities and maintenance for a home. If one’s household income will be tight after a divorce, it might make sense not to fight to keep the family residence.
- On a related note, if there is equity, the person keeping the residence will have to pay off their spouse’s share in that equity somehow.
- Typically, the person who keeps the home will need to refinance the mortgage to get their spouse’s name off it.
- On the other hand, for the sake of stability, a parent who will care for the children most of the time may want to keep the family home. However, this may be less important when custody arrangements give both parents approximately equal time with their kids. There are also arrangements parents can make where children stay in the same home and parents alternate residences.
- While there often is sentimental value in keeping the home, it is important for both spouses to look at their personal and financial futures. In some cases, for example, the couple is better off selling the home they had together and each taking a fresh start.
Think through the options
Like many questions related to divorce, whether a Michigan resident should try to keep the family home depends on that person’s individual circumstances. They should explore their options with respect to the family home before making any big decisions about it during a divorce.