How to Keep the House in a Divorce in Michigan: What You Need to Know
Understand Your Legal Rights, Financial Options, and What It Really Takes to Stay in the Family Home
Going through a divorce is already overwhelming—but the thought of losing your home on top of it can feel like too much to bear. For many people, the house isn’t just where they live—it’s their anchor. It holds memories, represents stability for children, and provides a sense of control when everything else is changing.
If you’re wondering whether you can stay in the home after your divorce, you’re not alone. Many people ask:
Is it even possible to keep the house in a Michigan divorce?
The answer depends on a mix of legal rights, financial realities, and—sometimes—your spouse’s cooperation.
This page will help you understand what’s actually involved in keeping the house, what options you might have, and how to make a decision that protects both your future and your peace of mind.
When Keeping the House Is an Option (and When It’s Not)
In Michigan, property is divided under a legal principle called equitable distribution. That doesn’t always mean a 50/50 split—it means the court tries to divide marital assets fairly based on the circumstances. If the house is considered marital property (and it usually is), there are a few ways it could be handled during the divorce.
🔹 What the Court Considers
A judge will look at several factors when deciding whether one spouse should keep the home:
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Each spouse’s income and financial situation
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Who will have custody of any children
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How much equity is in the home
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Whether the home was owned before the marriage
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Any prenups or postnups that impact ownership
If you and your spouse can’t agree, the court may order the house to be sold and the proceeds split. But if one person wants to keep the home—and can afford to—there may be options to make that happen.
📘 Helpful Resource: Dividing Property and Debt in Divorce – Michigan Legal Help
📘 Legal Overview: Equitable Distribution – Michigan Bar Journal (PDF)
Option 1 – Buying Out Your Spouse
One of the most common ways to keep the house in a Michigan divorce is through a buyout. This means you pay your spouse for their share of the home’s equity so that you can become the sole owner.
🔹 How a Buyout Works
To calculate the buyout amount, you’ll need to determine:
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The current market value of the home (often via an appraisal)
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The remaining mortgage balance
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The amount of equity in the home (value minus debt)
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The portion of equity owed to your spouse—typically 50%, unless another split is negotiated
For example, if the home is worth $240,000 and the mortgage balance is $160,000, there’s $80,000 in equity. If you and your spouse are splitting the equity evenly, you would need to pay them $40,000 to buy out their share.
🔹 How to Fund the Buyout
You can fund a buyout using:
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Personal savings
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Proceeds from refinancing (see Block 4)
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Trading other marital assets of similar value (see Block 5)
Before you move forward, it’s critical to make sure you can afford the total cost of the buyout and the home’s ongoing expenses on your own.
📘 Helpful Resource: Real Estate and Divorce – Michigan Legal Help
Option 2 – Refinancing to Remove Your Spouse
If you plan to keep the house after your divorce, refinancing the mortgage is often a necessary step—especially if both you and your spouse are on the current loan. Refinancing allows you to take full ownership and remove your spouse from any financial obligation tied to the property.
🔹 Why Refinancing Is Necessary
Even if your divorce agreement gives you the house, the lender is not bound by that agreement. If your spouse remains on the mortgage, they’re still legally responsible for payments—even if they no longer live there or want nothing to do with the home. Refinancing protects both parties and allows you to move forward with clear, sole ownership.
🔹 What You’ll Need to Qualify
Lenders typically require you to meet all standard loan criteria on your own, including:
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Sufficient income to cover the new mortgage
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A strong credit score
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A low debt-to-income ratio
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Enough home equity to support the loan structure
If you don’t qualify to refinance solo, you may not be able to keep the house unless you have a co-signer or can pay off the mortgage another way.
🔹 If Refinancing Isn’t Possible
If refinancing fails and your spouse refuses to remain on the loan, the court may ultimately require the home to be sold. In some cases, temporary agreements are made to delay refinancing—but that carries risk for both parties if payments are missed or the housing market shifts.
📘 Verified Resource: Dividing Property and Debt in Divorce – Michigan Legal Help
Gloria B. - Clinton Township, Michigan
“Thank you for contacting me. I didn’t know what I was going to do with this house"
Option 3 – Trading Assets Instead of Selling
If you can’t afford to buy out your spouse with cash or qualify for a refinance, another potential solution is to trade other marital assets in exchange for their share of the home. This is sometimes called an “asset offset.”
🔹 How an Asset Trade Works
Instead of a direct cash payment, you offer something else of similar value—such as:
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A larger share of a retirement account
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A vehicle
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Valuable personal property
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Your share in other joint accounts or investments
This type of trade can be especially helpful when you want to stay in the home, but cash flow is limited. It also avoids taking on new debt.
🔹 Be Careful with Valuations
When considering asset trades, make sure both sides understand the true value of what’s being exchanged. For example:
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A $30,000 retirement account isn’t the same as $30,000 in cash due to taxes and withdrawal penalties
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A home with upcoming repair needs may not hold its full market value
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Some assets appreciate over time while others lose value
For fairness and accuracy, it’s a good idea to involve a financial advisor or mediator when structuring a trade like this.
🔗 Related Reading: How to Sell a House That Needs Repairs Fast in Michigan
What If Your Spouse Won’t Agree to Let You Keep It?
Keeping the house in a divorce usually requires agreement between both spouses—especially if you’re both on the deed or mortgage. But what happens if your spouse refuses to cooperate, won’t negotiate fairly, or also wants to keep the home?
🔹 When You Can’t Agree
If the two of you can’t come to a mutual decision, the issue will likely need to be settled in court. In that case, a judge may:
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Award the house to one spouse if it's in the best interest of minor children or if one party can prove they’re better positioned to maintain it
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Require the home to be sold and the proceeds split
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Delay the decision if refinancing or buyout is possible in the near future
Michigan courts apply the principle of equitable distribution, meaning the judge will aim for a fair—not necessarily equal—division based on each party’s circumstances.
🔹 Mediation as a First Step
Before going to court, it’s often helpful to try mediation. A neutral third party can help both spouses reach a solution that avoids drawn-out legal battles and added emotional stress. If mediation fails, the court becomes the final decision-maker.
📘 Helpful Resource: Real Estate and Divorce – Michigan Legal Help
The Financial Reality of Keeping the House
Keeping the house may feel like the most stable option during a divorce—but it’s not always the most sustainable one. After separating, many people face the challenge of maintaining a household on a single income, often for the first time in years.
🔹 Can You Afford the Full Cost?
Even if you can manage the mortgage itself, there are other regular expenses that can stretch your budget:
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Property taxes and insurance
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Utilities and maintenance
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Unexpected repairs—like plumbing, roofing, or appliance issues
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Ongoing upkeep to keep the home safe and livable
It’s easy to underestimate these costs when you're focused on staying in a familiar space.
🔹 The Risk of Financial Strain
If the monthly bills leave no room for savings, emergencies, or long-term planning, the home can quickly become a financial trap. Divorce already comes with significant emotional and financial transitions—taking on a house you can’t afford might only add more stress.
🔹 Consider the Bigger Picture
Before committing to keep the house, take a realistic look at your full financial picture. Would downsizing or selling offer more freedom? Would it relieve pressure and give you a chance to rebuild?
🔗 Related Reading: I Can’t Afford My House Anymore – What Are My Options in Michigan?
When Keeping the House Is a Bad Idea
It’s completely normal to want to stay in your home after a divorce. But sometimes, holding on to the house can end up doing more harm than good—both financially and emotionally. Knowing when it’s time to let go is just as important as knowing how to stay.
🔹 Signs That Keeping the House May Hurt You Long-Term
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You’d be spending most of your income just to cover housing costs
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You’re unable to refinance or buy out your spouse
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The home needs major repairs you can’t afford
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The mortgage and bills are already overwhelming
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You feel emotionally stuck or stressed just thinking about staying
Sometimes what feels like “security” is really just a source of pressure and isolation. That’s especially true if you’re trying to maintain the home alone or at the expense of your overall financial well-being.
🔹 Letting Go Can Be a Fresh Start
Letting go of the house doesn’t mean giving up. In many cases, selling the home opens the door to something better—a simpler lifestyle, a fresh environment, and relief from burdens you didn’t even realize were weighing you down.
You’re not walking away from your future. You’re making room for it.
"When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
Alternatives to Keeping the House
If keeping the house isn’t possible—or isn’t the right decision for your future—there are other options that can help you move forward with less stress and more clarity. These alternatives can offer financial relief, reduce conflict, and give both spouses a clean break.
🔹 Option 1: Sell the House and Split the Proceeds
This is one of the most straightforward outcomes. You and your spouse agree to sell the house, pay off the mortgage, and divide the remaining equity. It allows both of you to walk away with a fresh start and eliminates shared responsibility for the property.
This option can also prevent future disputes about who’s paying the mortgage or maintaining the home.
🔹 Option 2: Agree to a Delayed Sale (Nesting or Temporary Orders)
Some couples agree to postpone the sale until a future milestone—like when the youngest child graduates or the housing market improves. During this time, one spouse may stay in the home while both continue contributing to costs. While this can work short-term, it’s important to outline clear expectations to avoid future disputes.
🔹 Option 3: Sell to an Investor for Speed and Simplicity
If you and your spouse need to sell quickly or don’t want to deal with repairs, showings, or waiting for buyers, selling to an investor may be a practical option. Investors often buy houses as-is and can close on your timeline, helping both parties move on faster without added complications.
🔗 Learn more: Sell a House During a Divorce in Michigan
Frequently Asked Questions
Here are answers to common questions about staying in the marital home after a divorce in Michigan. These can help you better understand your legal options and financial responsibilities.
🔹 How do I keep the house in a Michigan divorce?
You typically need to negotiate a buyout, refinance the mortgage into your name, or trade other assets to retain full ownership. If you and your spouse can’t agree, a judge may decide how the home is handled.
🔹 What is a buyout and how does it work?
A buyout means one spouse pays the other for their share of the home’s equity. The amount is based on the home’s value minus any mortgage debt, and it must be fair and agreed upon—or ordered by the court.
🔹 Can I keep the house if I don’t qualify to refinance?
It’s unlikely. If you can’t qualify for a refinance alone, most lenders won’t let you assume the mortgage. That may force a sale unless other arrangements—like a co-signer or asset trade—can be made.
🔹 What happens if we both want to keep the home?
If no agreement can be reached, the court will make the decision based on factors like income, custody of children, and who is better positioned to manage the home. In many cases, the judge may order the house to be sold.
🔹 Can I keep the home if my name isn’t on the mortgage?
Possibly. Ownership and mortgage responsibility are separate issues. If you’re awarded the home in the divorce, you’d still need to refinance or assume the mortgage to take full financial control.
Let’s Talk About Your Options
If you’re going through a divorce and unsure whether keeping the house is the right move, you don’t have to figure it out alone. Sometimes, the best first step is talking to someone who understands the legal and financial side of these decisions—and who can help you see the full picture without pressure.
At Dennis Buys Houses, we’ve helped hundreds of Michigan homeowners navigate difficult choices around divorce, property, and starting fresh. Whether you’re thinking about keeping the home, selling it, or just need clarity on your options, we’re here to help.
The conversation is confidential, no-obligation, and focused entirely on what works best for you—even if it doesn’t involve selling to us.
🔗 Learn more: Sell a House During a Divorce in Michigan
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“Mr. Fassett – thank you for working with us to buy my Mom’s home after she passed away. When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
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