If you are getting a divorce and you and your spouse are Michigan homeowners, you will probably need to decide what to do with the house as part of the divorce settlement. There are different options, and there are pros and cons to them.
Keeping the home
One or both of you could keep the home. In the former case, one person may decide to keep it in exchange for letting the other person have a larger share of another asset. If you go this route for property division, it’s important to take taxes, appreciation, depreciation and any costs associated with maintaining assets into account when you value them. One person could also buy out the other if they have the liquidity to do so. You may both decide to keep the home if you want to sell eventually but the market isn’t right, but you will need to be very specific about who is in charge of paying the mortgage and upkeep. You should also be aware of any capital gains taxes when it’s time to sell.
Many couples will decide to sell the house either during or after the divorce. This can feel like more of a clean break but also involves some negotiating, including who will make any necessary repairs, agreeing on an agent and sales price, and agreeing on an offer. If you can agree on these things, selling before filing may be the right move for some couples since the process can be more straightforward.
A sentimental attachment to the home can make it a particularly fraught and difficult issue to deal with in a divorce. However, it is important to try to look it as a business transaction and take the necessary steps to protect your financial interests.