When Michigan couples decide that it is time to get a divorce, determining what to do about the family home could be a difficult decision. If there are kids involved, the primary parent may wish to keep the home to make the transition easier for the children. In these cases, the person who wants to keep the family home may have to buy out the former spouse.
Before the former spouse can be bought out, the value of the home and each person’s interest must be determined. Once the value of the house is determined, the amount still owed on the house is subtracted from the value. Then, the remainder is divided between the two former spouses.
There are several ways that a former spouse can buy out the other person. The former spouse can offer an equal or fair portion of his or her marital assets. Alternatively, the former spouse can work with his or her bank to refinance and take a loan out on the home. If the former couple already has a substantial amount of equity in the home, an alternative option, is to take out a home equity line of credit, or a HELOC account.
If a person is insistent on keeping the family home after a divorce, a family law attorney may assist in negotiating with the other party to determine if this is a feasible option when dealing with the property division aspect of the divorce. The attorney may help obtain a valuation of the home to determine if the other marital assets can be divided up in a way that the other person can be bought out. Once it is determined that the person can afford the home on his or her own and the other party agrees, the decision may be put in the divorce decree.
