While your divorce is still underway, you and your spouse may share property that neither of you wants to keep. Selling it can make sense when your living arrangements or plans have already changed.
In Michigan, you can sometimes sell property before your divorce ends, but the sale might require your spouse’s agreement or court involvement. If you sell a marital asset, you also have to account for the proceeds when you resolve how to divide the property.
When a sale may require agreement
Michigan generally treats property you acquire during marriage as marital property. The court considers that property when dividing assets in the divorce, even if only one spouse’s name appears on the title.
If both of your names appear on the title, you usually cannot sell the entire asset without your spouse taking part. For real estate, both owners may have to sign the documents needed to complete the sale.
A court order may also restrict either spouse from selling or transferring property while the divorce is pending. If you and your spouse cannot agree on a proposed sale, the court may decide what happens to the asset.
What happens to the proceeds
Selling marital property does not remove its value from the divorce. The funds from the sale may remain part of what the court divides.
For example, you and your spouse could agree to sell a marital home before the case ends and hold the net proceeds until you settle the property issues. If you cannot agree, the court may set terms for how you hold or use those funds.
Closing papers can show the sale price and the amount left after paying costs tied to the sale. Those records can help account for the proceeds when the court divides property.
Reviewing the property before a sale
You may want to review the deed or title and any current court orders before taking steps to sell a major asset. Consider gathering records that show its current value and any debt tied to it. Keeping those documents together can help you address the property issues in your divorce.