If you are like many couples in Michigan, your family home is one of the largest and most valuable assets you own. It is also likely the asset to which you or your spouse attribute the strongest emotional tie as this is where you live and raise your children together. This, however, should not be the reason that you let emotions get in your way when deciding how to deal with your home when you get divorced.
Bankrate explains that selling a home during a divorce is a common solution to this and there is a good reason for this fact. Selling a home is often the only way to appropriately eliminate joint financial liability going forward. It is also often the most expedient form of allowing spouses to be financially free from each other, at least in terms of their home.
If one person keeps the house but the other person agrees to let the existing joint mortgage remain intact, potential problems lie ahead. If the person who stays in the house misses a payment or is even late on a payment, the activity will be reported on both spouse’s credit reports. Any collection or foreclosure actions will involve both parties, regardless of what responsibilities were outlined in a divorce decree.
If you would like to learn more about how to appropriate assess your options relating to your home when getting divorced, please feel free to visit the complex property division and valuation page of our Michigan divorce and family law website.