When a couple in Michigan ends their marriage, they will need to go through a process of dividing their property, including what to do with the family home. Since Michigan is an equitable distribution state, the best option for what to do with the house will depend on a variety of factors.
Equitable distribution and the family home
Equitable distribution means that the division of property will not necessarily be 50-50. Instead, the court will consider each person’s financial contribution, income, earning potential for the future and any other factors the court finds relevant to decide how they divide the marital property. If you and your spouse reach an agreement during the distribution of property and the court finds it fair, then the court will approve this division.
The family home is often one of the largest investments couples make during their marriage, but sometimes, they might be living in a home bought by one person before the marriage. However, the upkeep and mortgage during the marriage have been covered by marital funds. In those cases, while the family home is considered separate property, the appreciation in value during the marriage will be considered marital property.
Keeping, selling or buying out
There are several options for deciding what to do with the family home during the divorce. The circumstances for each couple will determine which is the best option for them. The options include:
• Keeping and co-owning the family home even after the divorce
• Selling the family home and dividing the profits
• One spouse buying out the other spouse and keeping the house