Few assets represent as much financial and emotional investment as your home. Therefore, it’s unsurprising that many people wan to keep the family home during a divorce.
With the Michigan real estate market booming, you may not want to shop for a rental unit or another house to purchase. Staying in the home where you have lived for many years may seem like a better option.
Keeping your home in a divorce is never as straightforward as it seems. First of all, you don’t get to just keep the home and its value entirely. You will likely have to share the equity in the home with your spouse. To do that, you will typically have to refinance the home unless you have other property that your spouse is willing to accept in lieu of direct equity from the home.
Can you qualify for a mortgage on your property?
It is much easier for a married couple to qualify for a mortgage on a single-family home than it is for one individual to secure a mortgage for the same amount. Even if your income qualifies you for a mortgage, you may have to pay a higher interest rate or make higher payments after withdrawing equity for your spouse’s share of the home value.
Additionally, you will have to handle all of the responsibilities that come with homeownership, ranging from cleaning to lawn maintenance, without someone just support you. That can be very challenging. Some people going through divorce find that downsizing to a smaller property is a more practical decision for both financial purposes and practical reasons.
A close review of your financial circumstances can give you a better idea about whether trying to keep your marital home is the best goal in your upcoming Michigan divorce.