Who Gets to Keep the Family Home in a Michigan Divorce?

Who Gets to Keep the Family Home in a Michigan Divorce?

For most, the family home is much more than just a piece of real estate: It is the center of family life, a source of stability for children, and likely the most valuable asset you own. Consequently, deciding who keeps the house is often a highly emotional and contentious part of a divorce.

If you are in the midst of ending a marriage in Michigan, you likely have questions about your property rights. At Iafrate & Salassa, P.C., we have nearly 50 years of combined experience helping clients in Metro Detroit find fair solutions to these difficult questions. We understand the anxiety you may be feeling, and we are here to provide the clear, compassionate guidance you need to protect your future.

How is Property Divided in a Divorce?

Michigan is an “equitable distribution” state. This means that the court aims to divide marital property fairly, but not necessarily 50/50. When determining who gets what, the court looks at several factors to reach an equitable outcome, including:

• The duration of the marriage.
• The contributions of each party to the marital estate.
• The age and health of both spouses.
• The earning capacity of each spouse.
• The needs of any minor children.

The court’s goal is to provide both parties with a fair share of the assets they accumulated together upon the end of their marriage.

Is a Home Always Considered Marital Property?

Generally, if you purchased the home during the marriage, it is considered marital property, regardless of whose name is on the deed. A home might be considered separate property if it was owned prior to the marriage and kept separate, or if it was an inheritance or gift. However, even separate property can become “commingled” (mixed) with marital assets and therefore subject to division. For example, if you owned a home before marriage but used marital funds to pay the mortgage or complete major renovations, the court may treat at least a portion of the home’s value as marital property.

Ways to Treat the Family Home in Property Division

In amicable situations, you and your spouse have the freedom to negotiate an agreement that works best for your family.

Common solutions include:

1. One Spouse Keeps the Home (Buyout): One person stays in the house and “buys out” the other’s share, providing the other spouse with their share of the equity value.
2. Selling the Home: The cleanest break often involves selling the property. The proceeds are used to pay off the mortgage and selling costs, and the remaining profit is divided equitably between the spouses.
3. Deferred Sale: If there are minor children, some couples agree for the custodial parent to stay in the home for a set period (e.g., until the youngest child graduates high school). After that period, the house is sold and the proceeds divided.

What to Do When You Can’t Agree

If you and your spouse cannot agree on the house, the court will decide for you. The judge will weigh the factors mentioned earlier, such as the financial ability of either spouse to maintain the home and the best interests of the children.

Because leaving this decision to a judge adds significant uncertainty to your future, it is usually beneficial to have a skilled attorney advocate for a settlement that protects your interests before it reaches this stage.

Determining the Right Path

Deciding what happens to your home is a major financial and emotional step, with many elements to consider. Though it may seem difficult, we at Iafrate & Salassa, P.C. are dedicated to helping you through this transition. Whether you want to keep the home or sell it for a fresh start, we will fight for an equitable result. Contact us today to start gaining clarity about how to divide your home and other valuable assets.