Mediate Michigan

Dealing with the marital home is complicated in our tough economic times. Ten or fifteen years ago when I was doing divorce settlements, one of the most valuable assets was the marital home. Almost every home had equity, along with pensions and 401ks. In many cases, especially if primary custody of the children was with the wife, there would be a settlement reached which would include a provision regarding the marital home. Often the wife and children could remain there as long as there was no remarriage or until the youngest child reached the age of 18, or some other key age. If the wife was paying the mortgage payments, she would get credit for reduction in principal on the mortgage, and at the time of sale or a buyout, after payment of closing costs, real estate commissions, and any other expenses for repairs necessary for sale, the net proceeds would be equally divided.

What about now? I rarely see a home with equity. Most homes are upside-down, often having a first mortgage and a second mortgage or a home equity loan with the value of the house being much less than what is owed. What do we do in this situation?

via Henry Gornbein: To Move or Not to Move; That Is the Question.