When going through a divorce in Michigan, the division of property becomes a significant consideration. This encompasses assets like cars, bank accounts, and, notably, the family home. Michigan law employs a principle known as equitable distribution to guide the process of dividing marital property. However, it remains unclear how the decision is made regarding the allocation of the family home.
Is The Home Marital Property?
Before determining who gets the family home, it is essential to establish whether the property is classified as marital or separate property. Marital property refers to any asset acquired during the course of the marriage. Consequently, if the home was purchased by either spouse during the marriage, it is considered marital property.
Nevertheless, if one spouse owned the home prior to the marriage or inherited it while married, it could be deemed separate property. In such cases, the spouse who initially owned the property or inherited it is generally awarded the home in the divorce settlement.
Factors That Affect The Division Of Marital Property
In scenarios where the family home is deemed marital property, there are various factors that come into play when determining who should receive it. Michigan law mandates that marital property be divided in an equitable, though not necessarily equal, manner.
Several factors influencing the division of marital property include:
- Each spouse’s contribution to acquiring, improving, or accumulating marital property.
- The duration of the marriage.
- The earning capacity and financial needs of each spouse.
- The standard of living established during the marriage.
- Each spouse’s age and health.
- Any previous marriages and responsibilities to children from those marriages.
Options For Dividing The Family Home
When it comes to dividing the family home in a Michigan divorce, there are several solutions available:
Buyout
One spouse may opt to buy out the other spouse’s share of the home. This can be achieved by refinancing the mortgage to remove the other spouse’s name or by compensating them for their portion of the home’s equity.
Sale
If neither spouse wishes to retain the home or when both parties mutually agree that selling is the best course of action, the home can be sold. The proceeds from the sale can then be distributed between the spouses.
Co-ownership
In cases where both spouses desire to retain the family home, they have the option to become co-owners of the property. This entails continued shared residence and the splitting of associated expenses such as mortgage payments and utilities. However, this arrangement can prove challenging if the divorce was not amicable and may necessitate the implementation of strict rules for cohabitation to prevent further conflicts.
Conclusion
Dividing the family home during a divorce is often fraught with emotional challenges. Nevertheless, it is important to recognize that numerous options exist. By approaching the situation collaboratively with your spouse and seeking guidance from experienced legal professionals, you can work towards finding a solution that is fair for both parties and enables you to move forward with your lives.