If you share a house with your spouse, it may be subject to Michigan property division laws in the event of a divorce. Depending on the circumstances of your case, you may decide to sell it and split the proceeds of the sale with your partner. It’s also possible that you’ll keep the house. In either scenario, you’ll want to have an appraisal done before signing any documents.
Why should you have your home appraised?
An appraisal will give you a better idea of what the home is worth, which is important when deciding if you can afford to retain possession of it. If you can’t, a timely appraisal will help you determine how much equity is in the home. This will allow you to calculate how much you would receive if the home were sold. It will also allow your spouse to calculate how much he or she would likely be entitled to in a buyout.
Your lender may ask for an appraisal
If you plan on refinancing your loan as part of the marital property division process, it’s possible that your lender will want to have the home appraised. In the event that the house is appraised prior to starting the refinance process, it may be used in place of one that would be generated by the bank or credit union that you want to work with. Generally speaking, you won’t be able to get a loan for more than what the house is worth.
The marital home is likely the most valuable asset that a couple will have. Therefore, it’s important to know how much it is worth so that you get as much as you may be entitled to in a final settlement.