Living together during a divorce can be a recipe for disaster. Spouses may find themselves fighting constantly, which can affect everyone in the household. Particularly when the divorce is not amicable or there are minor children to consider, it is often beneficial for one spouse to leave the marital home to keep the peace.
Many people feel anxious about the idea of leaving the home, as they do not want to give up their interest in a highly-valuable marital asset. Some people warn those preparing for divorce that moving out might constitute abandonment of the marital home.
Do spouses who move out during a divorce give up their interest in their primary residence?
Possession and ownership are different
Leaving the marital home during divorce effectively means surrendering possession to the other spouse. That may not necessarily be a permanent arrangement. It may simply be the best option for reducing conflict in the immediate future.
Sometimes, one spouse leaves to keep things calm but seeks to regain possession of the home later. Even if they have already decided to live elsewhere after the divorce, allowing the other spouse to retain possession of the home does not eliminate a spouse’s shared interest in the value of the home.
Michigan law requires the equitable distribution of marital property. Essentially, the final ruling for the distribution of property and debts should be fair given the circumstances of the spouses. It usually is not a fair arrangement to let one spouse retain all of the equity in the marital home.
Instead, the spouse staying might refinance to withdraw equity to buy out the other spouse. People can also use other valuable resources or marital debts to balance the economic scales during property division proceedings.
Spouses can either set their own terms through negotiation outside of court, or they can litigate and have a judge rule on the details of the property division process. In either scenario, both spouses typically have a right to a fair amount of equity.
Properly addressing high-value assets during divorce requires careful planning and an understanding of equitable distribution rules. Spouses planning to leave their marital home may need to discuss the situation with an attorney to ensure that they continue fulfilling all of their legal and financial obligations so that they can protect their interests more effectively.