Michigan is an equitable distribution state, meaning the court divides marital property fairly, though not necessarily equally. The court considers numerous factors to reach a decision that reflects fairness and equity for both parties. Unlike community property states, where assets are typically split 50/50, Michigan courts have the discretion to consider the unique circumstances of each case. As you can see, determining who gets the house in a divorce can be complex.
Marital vs. separate property
To decide how to divide the assets, it is essential to distinguish between marital and separate property. Marital property encompasses assets obtained throughout the marriage, including the family residence. In contrast, separate property refers to one spouse’s assets before marriage or acquired individually through inheritance or gifts.
Who gets the house?
If both spouses contributed to the mortgage or improvements of the house, it is typically considered marital property. Even if only one spouse’s name is on the title, you can divide the house equitably. Still, several factors influence how the marital home is divided in a Michigan divorce:
- Length of the marriage: Longer marriages may result in a more equal division of assets, including the home, whereas shorter marriages might revert to premarital property status.
- Contributions to the marriage: The court considers financial contributions, such as paying the mortgage, and non-financial contributions, like homemaking and childcare, when dividing property.
- Custody of children: If one spouse has primary custody, they may be more likely to receive the marital home to prioritize the children’s stability.
- Financial needs and earning capacity: The court assesses each spouse’s financial situation, including their ability to support themselves post-divorce, influencing who retains the home.
- Debt and liabilities: Debts associated with the home, such as a mortgage, are also considered. The court may decide to keep the debt with the house, assigning it to the spouse who receives the property.
Still, remember that prenuptial or postnuptial agreements can significantly impact the division of the marital home. If such contracts are deemed fair, the court will uphold them, providing clear guidance on how the house should be divided.
Options for Dividing the Home
Depending on your situation, there are several ways the division of the marital home can be handled:
- Selling the home: The most straightforward option is to sell the house and divide the proceeds. This can be a clean break, allowing both parties to start fresh.
- One spouse buys out the other: One can buy out the other’s share of the home, allowing them to retain ownership while compensating the other.
- Co-ownership: In some cases, ex-spouses may agree to continue co-owning the home, mainly if it is financially advantageous or if they wish to maintain stability for their children.
Determining who gets the house in a Michigan divorce involves carefully considering many factors to reach a fair and equitable outcome. While the process can be complex, understanding the legal principles and options available can help guide you through this challenging time. Consulting with a knowledgeable family law attorney can protect your rights and interests throughout the divorce proceedings.