If you own a house with your spouse, there is a good chance that it will need to be included in your divorce settlement. The state of Michigan is an equitable division state, so you’ll likely receive a portion of any positive equity that you have in the home. This is generally true whether you sell the home before or after the divorce is finalized.
Why should you sell the home before your divorce is finalized?
Your top priority should be to get as much as possible from the sale of this asset. If you believe that market conditions are more favorable today than they will be several months from now, it’s generally best to sell today. Selling prior to reaching a settlement may also make it easier to pay legal fees, put a down payment on a new home or take care of other expenses that might arise.
Why should you sell the home after the divorce is finalized?
Selling the home after reaching a property division settlement may be ideal because you know how much of the proceeds you are going to receive. Furthermore, if market conditions aren’t ideal prior to the divorce, it’s generally not a good idea to force a sale just for the sake of moving on. Finally, selling the house after the divorce may mean that you have a place to live while a settlement is being reached.
If you are getting divorced, you’ll likely be entitled to a portion of the marital estate. This generally includes any assets that were acquired during the marriage such as price appreciation in a home, retirement account or brokerage account. You may also be entitled to a portion of any funds inside of a joint bank account.