Do You Sell or Stay in Your Home Through Divorce?

Divorce can be a difficult experience, especially when deciding what to do with your shared property. One major decision is whether to sell the marital home or have one spouse remain in it. This choice can be complex, requiring financial, emotional, and practical considerations, and it’s essential to know your options.

For many individuals, the family home holds great sentimental value, and selling it can be incredibly challenging if it has played a significant role in their lives. In such cases, choosing to remain in the home can provide a sense of comfort and stability during a rough period. However, assessing whether keeping the house is practical is important, and weighing the emotional costs against the practical benefits is essential.

Assessing how selling the marital home will affect your finances is essential when going through a divorce. In Michigan, marital property is usually divided equitably but not necessarily equally. Selling the home can help ensure both parties receive a fair share of the proceeds, making the financial transition easier. However, if one spouse wants to keep the house, they may need to buy out the other’s share, which can be complicated. It’s a good idea to talk to a financial advisor and a real estate expert to figure out the best way to handle the situation.

If you are considering staying in the home, consider the following:

• Mortgage affordability (this may change from what you are currently paying due to refinancing and today’s current higher interest rates. It could also go down with different mortgage terms)
• Qualifying for a new mortgage on your own (do you need a cosigner, higher income, longer job history, etc.)
• Property taxes
• Insurance
• Maintenance expenses. Can you stay in the home and cover the costs associated with the upkeep?

If children are involved, consider how the living arrangements affect their well-being and daily routines. 

Property and assets acquired during the marriage are divided based on many factors. Here are a few the court will consider: 

• If the house is marital or separate property
• The contribution of each spouse to acquiring and maintaining the marital property
• The financial needs, circumstances, and future prospects of each spouse
• The duration of the marriage
• If children are involved

Awareness of these factors can help you negotiate effectively during the divorce proceedings and plan for the future accordingly.

The decision to sell your home or stay in it during a divorce is one of the most significant choices you will make during this challenging time. Balancing financial considerations, emotional attachments, and practical realities is essential to ensure the best outcome for both parties and any children involved. Seek professional guidance from a certified divorce financial analyst and a trusted real estate professional, and communicate openly with your spouse, considering all possibilities before making a final decision. Remember that there is no one-size-fits-all answer, and the best solution will be unique to your situation. Through thoughtful consideration and open dialogue, you can navigate this process and move towards a new chapter with greater clarity and peace of mind. 
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Divorce can be an emotionally challenging process, and at Ginger Baxter Group, we understand that and will work closely with you to ensure the best outcome for you and your family. And above all, remember to take care of yourself and your loved ones during this challenging time.