Who Gets the House in a Divorce in Michigan?
Neither spouse automatically gets the house. If you agree, your settlement decides. If you can’t, a judge decides what’s fair for your family and can award the house to one of you, order it sold and the proceeds divided, or order it partitioned (MCL 552.19, 552.103). Most couples land on one of three outcomes:
- One spouse keeps it and buys out the other, usually by refinancing
- You sell and divide what’s left after the mortgage and costs
- You sell later, at a date or event your settlement sets
Haven’t filed yet? What to do with the house first, and help finding a family law attorney ↓
Verified against Michigan statutes and court opinions on October 19, 2026. By Joel Schmidt, Broker/Owner. General information, not legal advice.
Where are you right now?
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If you’d rather talk now, call 800-417-0117.
- Been there: Joel has been through a divorce himself
- Licensed since 2004, broker since 2015
- Years working with family law attorneys, mediators and judges
- The calm middle: when you sell, one value report to both of you, and help avoiding decisions that hurt the sale
- Confidential: we never name divorce clients, and the listing never mentions divorce
“I’ve referred clients to Joel Schmidt of Realty Concierge Group for years. He treats both spouses the same, communicates with each side clearly and concisely, and keeps both attorneys informed. Many of my former clients have told me how easy Joel made the entire home sale process during their divorce, and how nice it was to have a neutral third party handling the house.”
Is Michigan a 50/50 divorce state?
No. Michigan is not a community property state. A judge divides the marital estate to reach a fair and equitable result for that family, which is often close to equal but doesn’t have to be.
Fair, not automatically equal
The court doesn’t need mathematically equal shares, but any significant departure from roughly equal shares must be clearly explained. Berger v Berger, 277 Mich App 700 (2008)
Judges weigh the factors that matter in that case: length of the marriage, each spouse’s contributions to the marital estate, age, health, life status, necessities and circumstances, earning abilities, past relations and conduct, and general principles of equity. Sparks v Sparks, 440 Mich 141 (1992)
What about a house one of you owned first?
Courts generally divide only the marital estate, and property one spouse brought into the marriage is usually separate. Korth v Korth, 256 Mich App 286 (2003)
The statutes allow two exceptions: the other spouse contributed to the property’s acquisition, improvement or accumulation (MCL 552.401), or what was awarded isn’t enough to support a spouse and the children in their care (MCL 552.23). Mortgage payments or improvements made with marital money can matter here.
What should you do with the house before filing for divorce in Michigan?
Filing doesn’t change who owns the house or who owes the mortgage. Once a case is filed, though, the court can issue orders that limit what either of you does with the house (MCR 3.207). What you do before and after filing can make the rest of the process easier, or harder.
Talk to a family law attorney first
Before you move out, sign anything about the house, or list it, get advice on how it could affect your case. Where each of you lives during the case, and what you agree to early, can be hard to undo later.
Keep paying the mortgage
The lender still expects every borrower on the loan to keep it current, whatever is going on at home. Late payments hurt the credit of everyone on the loan, and that can make a refinance or your next purchase harder.
Gather the house paperwork
Your deed, recent mortgage and any home equity loan statements, tax bills, and records of who put what into the house: the down payment, an inheritance, a remodel. Your attorney will ask for them, and they matter if one of you owned the home first (MCL 552.401).
Get a feel for the numbers, quietly
Run the buyout and sale calculator to see roughly what the equity looks like either way. The numbers you enter stay on this page. If you send the form after using the calculator, your estimate is included so we can follow up.
How does a house buyout work in a Michigan divorce?
The spouse keeping the house pays the other spouse their share of the equity, usually by refinancing the mortgage into their own name. Equity is the home’s value minus the mortgage and any liens, and your settlement or the judge sets each share. It means no listing and no showings, but it only works if you both trust the value and the keeping spouse can get the new loan.
Agree on what the home is worth
Every dollar of the buyout depends on this figure, so it can’t come from either spouse’s opinion. Use a licensed appraiser’s value; many couples hire one appraiser together. The lender orders its own appraisal for the refinance, so ask your attorneys how the settlement should handle it if the two numbers differ.
Figure the equity and each share
Value, minus the mortgage payoff and any liens, is the equity. Your settlement or the judge sets each spouse’s share. We make sure the property numbers are sound; your attorneys handle the split.
Refinance to release the departing spouse
This is the step people miss. A judge can order the spouse keeping the house to try to refinance, but can’t order the bank to take a name off the loan. Until the old loan is paid off, both of you still owe it.
How do you refinance the mortgage after a divorce?
Lenders underwrite the keeping spouse alone: one income, one credit file, and support counted the way the lender’s rules allow. For loans sold to Fannie Mae, a refinance that buys out a co-owner in a divorce can be treated as a limited cash-out refinance if the home was jointly owned for at least 12 months before the new loan funds and all parties sign a written agreement stating the terms of the transfer. The spouse keeping the house can’t take cash out and must qualify for the new loan. Paying off a HELOC or second mortgage that wasn’t used to buy the home can make it a cash-out refinance with tighter limits. Fannie Mae Selling Guide B2-1.3-02
If the refinance won’t work, you haven’t lost anything. Finding out early is the point. If the keeping spouse can’t qualify, selling usually becomes the plan, and we’ll give you both a free market report and a net-proceeds estimate for the sale. Check whether the refinance will work before anyone commits to a buyout in the settlement.
Michigan divorce house buyout calculator
See roughly what the spouse leaving is owed, how big the new loan would be, or what’s left after a sale. Your numbers aren’t sent anywhere unless you send the form.
Enter the home’s value and the mortgage payoff (0 if none) to run the numbers.
Where the selling costs come from. Michigan transfer tax is $3.75 per $500 of value for the state and 55¢ per $500 for the county, counted in $500 steps (MCL 207.525 and 207.504). If the home is your principal residence and its state equalized value (SEV) is no higher than it was when you bought it, the sale may be exempt from the state portion of the transfer tax, and a refund can be requested if it was already paid (MCL 207.526(u)). Title and closing are a planning estimate of $5 per $1,000 plus $300; your title company sets its own. Not included: prorated taxes, repairs or credits negotiated with the buyer, and liens you didn’t enter.
What this doesn’t include. Refinance closing costs, credits your settlement may give for a down payment, inheritance or improvements, and whether the keeping spouse qualifies alone. The value you enter drives everything: each $10,000 of value moves each share by your percentage of $10,000.
An estimate for planning, not legal, tax or financial advice. Your settlement or the court decides how equity is divided.
If your spouse is keeping the house
- The value matters to you as much as to them. Your buyout check is your share of the equity, so make sure it’s based on a licensed appraisal before you agree to it.
- You stay on the loan until it’s refinanced, paid off, or the lender formally releases you, even after you sign the house over (see step 3 above). Ask your attorney about a refinance deadline in the settlement.
- Plan your next home early. What you qualify for on one income is often different. Help buying your next home is a separate engagement, and the other party is told.
Can you sell the house during a divorce in Michigan?
Yes, if you both agree, and you can sell before the divorce is final unless a court order in your case says otherwise. A Michigan divorce can’t be heard until at least 60 days after filing, or 6 months with minor children (on petition, the court can shorten that to as little as 60 days for unusual hardship or compelling necessity), so many couples sell during the wait. MCL 552.9f
If you can’t agree, the court can order a sale
In the divorce judgment, the judge can order the house sold and the proceeds divided as the court decides. MCL 552.103 Ask your attorney whether the court can order a sale sooner in your case. While the case is pending, the court can also order either spouse to pay what’s needed to conserve the property, such as the mortgage, taxes and insurance. MCL 552.13
We build the pricing and marketing plan around any court deadline and report to both attorneys.
How we keep it fair for both of you
- The same information goes to both spouses at the same time. No side conversations.
- Every decision is documented in writing for both attorneys.
- Showings are scheduled around whoever lives there, with advance notice.
- Every offer goes to both of you at once, with the same market data.
- The listing never mentions the divorce.
Selling later instead (a deferred sale)
One spouse stays for a set period, such as until the youngest finishes school, and the house is sold on terms you agree on now: who pays the mortgage, taxes and repairs in the meantime, and how the proceeds split. Settle how the house will be deeded now too, because a transfer between former spouses years later can raise the property taxes (see below).
Who gets the furniture and belongings in a Michigan divorce?
Dividing what’s inside the house is often the hardest part, and it can quietly hold up the sale. Your settlement or the judge decides who keeps what: the court can divide both the real and personal property of the marriage, or award one spouse the item and the other its value in money (MCL 552.19). Our job is to keep it from stalling the house.
Expect it to take the longest
Furniture, the garage, the things with memories attached. Knowing it’s usually the slowest piece helps both of you plan for it instead of fighting over it at the last minute.
Work items are their own conversation
Tools, trailers or equipment one spouse uses to earn a living can be argued differently than household items, since each spouse’s earning ability is one of the factors courts weigh in dividing property (Sparks v Sparks, 1992). That’s for your attorneys to work out; we just make sure it doesn’t hold up the listing.
Agree on the move-out date early
You can list with your things still in the house, but who takes what, and when it’s out, needs to be settled before the buyer takes possession, usually at closing. We help you both stay focused on that date so the sale doesn’t slip.
Name a tie-breaker in your settlement. If you expect trouble over belongings, the move-out date or the sale, ask your attorneys about naming a neutral third party to handle those disputes, so every disagreement doesn’t end up back in front of the judge. A mediator helps you reach an agreement but doesn’t decide for you (MCR 3.216). A domestic relations arbitrator can make a binding decision on property issues if you both sign an agreement to arbitrate them and the court orders it, and appeal rights are limited (MCL 600.5071–600.5072).
Either one costs money. They bill for their time, usually by the hour, and under the court rule a mediator’s fee is usually split equally, though the court can change that (MCR 3.216(J)). Your settlement can say how a tie-breaker is paid. Weigh that against the cost of going back to court.
What happens to the deed, property taxes and transfer tax in a Michigan divorce?
A deed from one spouse to the other as part of the divorce usually doesn’t raise the property taxes and is often exempt from transfer tax, but it doesn’t take anyone off the mortgage. Timing and wording matter, so settle the house in the divorce, not years later.
The deed changes when you divorce
A married couple who owns the home as joint tenants or tenants by the entireties becomes tenants in common when divorced, unless the divorce judgment decides ownership another way. MCL 552.102 A certified copy of the judgment can be recorded with the register of deeds. MCL 552.104
Recording the judgment puts the change of ownership on record, but title companies and lenders often still want a new deed.
Property taxes: timing matters
A deed between spouses made during the marriage, or in the divorce solely to end a tenancy by the entireties, generally isn’t a transfer of ownership, so the taxable value stays capped. If you stay co-owners after the divorce, a later deed from one former spouse to the other is a transfer of ownership and can partly uncap the taxable value. State Tax Commission, Transfer of Ownership Guidelines (rev. Feb. 25, 2025); MCL 211.27a
Transfer tax on the buyout deed
If you hold title as tenants by the entireties, state and county transfer tax exempt a conveyance creating or ending that tenancy. They also exempt a court judgment or order making a transfer unless it specifies a monetary consideration for it. MCL 207.526(i), (l); MCL 207.505(i), (j) Couples who hold title another way, or who deed the house after the divorce, may not fit these exemptions. A sale to an outside buyer is taxed normally.
Do you owe capital gains tax on the house?
A transfer of the home to a spouse or ex-spouse as part of a divorce settlement is generally treated as having no gain or loss. On a later sale, the spouse who moved out can still count the home as their residence while the other spouse lives there under the divorce or separation instrument. IRS Publication 523 (2025)
Is the house also in bankruptcy, foreclosure or an estate?
Michigan divorce and the house at a glance
| Question | Michigan rule |
|---|---|
| How is property divided? | Fair and equitable in light of all the circumstances; not automatically 50/50. Significant departures from roughly equal must be explained.Sparks v Sparks, 440 Mich 141 (1992); Berger v Berger, 277 Mich App 700 (2008) |
| What can the judge do with the house? | Award it to one spouse, order it sold and the proceeds divided, or (for a home you own jointly) order it partitioned.MCL 552.19; MCL 552.103 |
| What happens to joint ownership at divorce? | Joint tenants or tenants by the entireties become tenants in common, unless the judgment decides otherwise.MCL 552.102 |
| House owned before marriage? | Generally separate. Exceptions: the other spouse contributed to it, or support needs require it.MCL 552.401; MCL 552.23 |
| Who pays during the case? | The court may order either spouse to pay sums needed to conserve the couple’s property while the case is pending.MCL 552.13 |
| Earliest the divorce can be heard | 60 days after filing; 6 months with minor children, which the court can shorten on petition to as little as 60 days for unusual hardship or compelling necessity.MCL 552.9f |
| Residency to file | 180 days in Michigan and 10 days in the county before filing (a narrow exception can waive the county requirement).MCL 552.9 |
| Transfer tax on a divorce deed | Exempt for a deed ending a tenancy by the entireties if you hold title that way, or a court-ordered transfer without a stated price.MCL 207.526(i), (l); MCL 207.505(i), (j) |
| Property tax uncapping | Generally not triggered by a deed between spouses, or by a divorce deed made solely to end a tenancy by the entireties; a deed between former spouses afterward is a transfer of ownership.State Tax Commission Transfer of Ownership Guidelines (2025) |
| Transfer tax on a sale | State $3.75 and county 55¢ per $500 of value.MCL 207.525; MCL 207.504 |
| Refinancing a buyout | Fannie Mae can treat it as a limited cash-out refinance if the home was jointly owned at least 12 months and all parties sign a written agreement; the keeping spouse must qualify alone and can’t take cash out.Fannie Mae Selling Guide B2-1.3-02 (Oct. 8, 2025) |
A divorce real estate specialist for Michigan family law attorneys and mediators
From agreed sales to court-ordered sales, we handle the real estate so counsel isn’t managing it.
One valuation, both sides
One market report and net-proceeds estimate delivered to both spouses and both counsel at the same time when the home is sold.
Parallel communication
We talk to each spouse separately and keep both sides equally informed, so the house isn’t another fight.
Built around your deadlines
Pricing, marketing and closing planned around settlement terms or court-ordered dates, with net-proceeds reports for the file.
“As a divorce attorney in Livingston County, Michigan, I know that finding a real estate agent who can help minimize conflict and tension for both parties when selling the marital home is not always an easy task. Once I hand the house to Joel, it’s off my plate, and I can focus on the rest of my clients’ case and help more people. Even when the spouses aren’t speaking or the sale is court-ordered, he keeps it moving, and my clients still get a strong price.”
Selling the house? Start with the number you both need
A free, confidential value check and net-proceeds estimate, sent to both of you at the same time.
Questions about the house in a Michigan divorce
Is Michigan a 50/50 divorce state?
No. Michigan doesn't require an equal split. The judge aims for a fair result for your family, which often lands near 50/50, and has to explain any big departure from roughly equal shares.
Who gets the house in a divorce in Michigan?
Whoever your settlement says, if you agree. If you don't, the judge chooses: one spouse keeps it, it gets sold and the money divided, or, for a jointly owned home, it's partitioned (MCL 552.19, 552.103).
Can my spouse force me to sell the house during a divorce?
Not on their own. If you own the house as a married couple (tenants by the entireties, the usual form), neither of you can sell it without the other's consent, and a buyer will want both signatures in any case. If you can't agree on what to do with it, either of you can ask the judge to decide. In the divorce judgment, the judge can order it sold and the proceeds divided (MCL 552.103). If a sale is ordered, cooperating usually gets a better price than having the court manage the sale.
How is a divorce house buyout calculated in Michigan?
Start with the home's current market value, subtract the mortgage payoff and any other liens, and you have the equity. The spouse keeping the house usually pays the other spouse their share of that equity under the settlement. The share depends on your settlement or the judge's decision, so it isn't automatically half. Because the value drives everything, use a licensed appraiser's value rather than either spouse's estimate; the refinance lender will also order its own appraisal. Our buyout calculator on this page runs the math.
How do I remove my spouse from the mortgage after a divorce?
Usually the spouse keeping the house refinances into their own name, which pays off the old joint loan; they have to qualify alone. Some lenders will also formally release a borrower. The divorce judgment alone can't take anyone off the loan, because the lender isn't part of your case.
Does a quitclaim deed take my name off the mortgage?
No. A quitclaim deed changes who owns the house. It does not change who owes the loan. Only paying off the loan, usually through a refinance or a sale, or a formal release from the lender, takes a borrower off the debt.
Who pays the mortgage during a divorce in Michigan?
The loan doesn't change during the case, so the lender still expects every borrower on the note to keep it current. Between the two of you, who pays is decided by agreement or by the court. While the case is pending, a Michigan judge can order either spouse to pay what's needed to conserve property the couple owns (MCL 552.13). Missed payments hurt both borrowers' credit, so settle this early.
Is a house I owned before marriage split in a Michigan divorce?
Usually not; it generally stays with the spouse who owned it. The exceptions are when the other spouse contributed to buying, improving or building up the house, or when what a spouse is otherwise awarded isn't enough to support them and the children in their care (MCL 552.401, 552.23). Keep your mortgage and remodel records.
Can we sell the house before the divorce is final?
Yes, if you both agree, unless a court order in your case says otherwise. Michigan makes you wait at least 60 days after filing before the divorce can be heard, or 6 months with children under 18, which the court can shorten to as little as 60 days for unusual hardship or compelling necessity (MCL 552.9f), and many couples sell during that wait.
Do we have to divide our belongings before we sell the house?
No. You can list the house with your things still inside. But who takes what, and when it's moved out, needs to be settled before the buyer takes possession, usually at closing. Agree on a move-out date early, check with your attorneys before moving anything out while the case is pending, and let them handle the division.
What if we can't agree on belongings or the move-out date?
Your settlement can name someone to help with those disputes, so fewer of them end up back in court. Mediation is non-binding: the mediator only helps you two agree (MCR 3.216). Binding arbitration on property issues is available if you both sign an agreement for it and the court orders it, with limited appeal rights (MCL 600.5071-600.5072). Both cost money, since they charge for their time, so ask your attorneys which fits.
Will the property taxes go up if one of us keeps the house?
Usually not, if the house is deeded to one of you while you're still married, or as part of the divorce solely to end your ownership as a married couple (tenancy by the entireties). If you stay co-owners after the divorce and one of you later deeds it to the other, the taxable value can partly uncap.
Is there transfer tax when one spouse deeds the house to the other in a divorce?
Often not, if you own the home as tenants by the entireties (the usual way married couples hold title), or if the court orders the transfer without naming a price. Other ways of holding title, or a deed signed after the divorce, may not qualify, so your title company confirms it.
Do we owe capital gains tax when the house is sold or transferred in a divorce?
Moving the house to your spouse or ex-spouse as part of the divorce generally isn't taxed at the time, but the spouse who keeps it takes over the existing tax basis (what was paid plus improvements) for a later sale. On a sale to a buyer, each eligible owner can usually exclude up to $250,000 of gain ($500,000 filing jointly), and a spouse who moved out can still count the home as a residence while the other lives there under the divorce or separation instrument. A tax professional can run your numbers.
Can I buy a new house before the divorce is final?
Sometimes, but check first. A home bought before the judgment can be treated as part of the marital estate, and many lenders want the settlement or judgment before they approve you, since support and the old mortgage affect what you qualify for alone. Talk to your attorney and a lender before you make an offer. If you'd like our help buying your next home, that's a separate engagement, and the other spouse is told.
Can Realty Concierge Group work with both of us?
Yes. When you own the house together, you are both the sellers, and we keep both of you informed at the same time with the same information. We don't share one spouse's private plans with the other, and the same market report goes to both of you and both attorneys. If either of you later wants help buying your next home, that's a separate engagement, and we'll tell the other party.
Can you recommend a divorce attorney in Michigan?
Yes. We've worked alongside Michigan family law attorneys and mediators for years. After a quick, confidential call about your situation, we'll recommend one we trust. There's no charge, and you're always free to hire whoever you like. We're real estate brokers, not attorneys, so we can't give legal advice ourselves.
Is the home value check really free?
Yes, for a home you're selling or deciding whether to sell. It's free and confidential, and it doesn't obligate either of you to list with us. It is a broker's market opinion, not an appraisal. If one of you is keeping the house, use a licensed appraiser for the buyout number; the refinance lender orders its own appraisal too.
What areas does Realty Concierge Group serve for divorce home sales?
We're based in Brighton and take listings throughout Michigan's Lower Peninsula. Most of our divorce work is in Livingston, Oakland and Washtenaw counties, including Brighton, Howell, Hartland, Pinckney, Milford, South Lyon, Novi, Ann Arbor, Dexter and Saline.
About the author
Joel Schmidt, Broker/Owner of Realty Concierge Group in Brighton, Michigan. Licensed in Michigan since 2004 and a broker since 2015. For years Joel has worked with Michigan family law attorneys, mediators and judges on the marital home, including buyouts, agreed sales and court-ordered sales. He has also been through a divorce himself, so he knows firsthand what to do, and what not to do, with the house. LinkedIn
Last updated . Joel is a real estate broker, not an attorney or tax advisor. This page is general information, not legal or tax advice; talk to your attorney about your case.
Sources
- Michigan Compiled Laws, Chapter 552 (MCL 552.9, 552.9f, 552.13, 552.19, 552.23, 552.102–552.104, 552.401): legislature.mi.gov
- State Real Estate Transfer Tax Act, MCL 207.525 (rate) and 207.526 (exemptions): legislature.mi.gov
- County real estate transfer tax, MCL 207.504 (rate) and 207.505 (exemptions): legislature.mi.gov
- Michigan State Tax Commission, Transfer of Ownership Guidelines, revised Feb. 25, 2025: michigan.gov
- Sparks v Sparks, 440 Mich 141; 485 NW2d 893 (1992); Berger v Berger, 277 Mich App 700; 747 NW2d 336 (2008); Korth v Korth, 256 Mich App 286; 662 NW2d 111 (2003). As quoted in Mayo v Maskell, Mich Ct App No. 359026 (May 11, 2023): courts.michigan.gov
- Michigan Court Rule 3.216, Domestic Relations Mediation (published by the Michigan Supreme Court). Michigan Court Rule 3.207, Ex Parte, Temporary and Protective Orders. Domestic Relations Arbitration Act, MCL 600.5070–600.5082: legislature.mi.gov
- IRS Publication 523 (2025), Selling Your Home: irs.gov
- Fannie Mae Selling Guide B2-1.3-02, Limited Cash-Out Refinance Transactions (Oct. 8, 2025): fanniemae.com
- Michigan Legal Help, Quitclaim Deeds and Divorce: michiganlegalhelp.org