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Michigan Family Law Issues in Tough Economic Times: The Marital Home

More and more cases involve marital homes that have negative equity. If your home has little or no equity, there are several decisions that have to be made in the divorce. First of all, do you keep the home? If there is the cash flow to do so, it may be wise to keep the home until the economy turns around. If you or your spouse cannot afford to keep the home, and are forced to sell it, try to work out a walk-away with the bank. 

This will depend on the economic circumstances of your divorce. Another possibility is a short sale. In a short sale, you may have to come up with cash or the bank may allow you to walk away. If you have a second mortgage, this will complicate the situation, and while you may be able to walk away from the first mortgage, the second mortgage or home equity line will put you into a situation where unless they are willing to negotiate on that as well, you may be stuck. Other possible options in these situations may be bankruptcy. This is where it is important to have sound legal advice for any marital property division.