Housing Costs After Divorce in Michigan
Last reviewed: March 2026
The median home in Michigan is valued at $235,000. Keeping that home on a single income costs approximately $1,800/month (mortgage + taxes + insurance + maintenance). Renting a comparable home actually costs more in Michigan — about $228,592/month more.
Monthly carrying costs in Michigan
Here is what it costs to keep the median-priced home in Michigan ($235,000) on a single income. These figures assume a 20% down payment and a 30-year fixed mortgage at 6.09%.
| Expense | Monthly | Annual |
|---|---|---|
| Mortgage (80% LTV, 30yr fixed) | $1,138 | $13,657 |
| Property taxes (1.44%) | $282 | $3,384 |
| Homeowners insurance | $184 | $2,206 |
| Maintenance (1% rule) | $196 | $2,350 |
| Total carrying cost | $1,800 | $21,597 |
Can you afford to keep it?
Financial advisors generally recommend keeping housing costs below 28–35% of gross income. Here is what you would need to earn to keep the median Michigan home:
| Threshold | Monthly income needed | Annual income needed |
|---|---|---|
| Conservative (28%) | $6,428 | $77,131 |
| Moderate (35%) | $5,142 | $61,705 |
Michigan insurance costs
Homeowners insurance in Michigan averages $2,206/year ($184/month). This is below the national average of $3,548/year.
Keep vs. sell: the numbers
Renting a comparable home in Michigan costs approximately $230,392/month (based on a price-to-rent ratio of 0.1). Owning is actually cheaper than renting by about $228,592/month in Michigan.
If you sell, closing costs in Michigan average 2.70% of the sale price ($6,345 on a $235,000 home). This includes transfer taxes, title insurance, recording fees, and agent commissions.
Property division in Michigan
Michigan is an equitable distribution state. This means the court divides marital property based on what it considers fair, which may not be 50/50. The house is typically the largest marital asset, so how it is handled significantly affects the overall settlement.
Can you actually afford to keep your Michigan home?
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Not financial or legal advice. DivorceSmart is an educational planning tool. Always consult a qualified attorney and financial advisor before making settlement decisions.
From uncertainty to clarity in 3 steps
No account required. No credit card. Just your numbers.
Enter your numbers
Settlement amount, income, expenses, alimony, house — takes about 2 minutes. Everything runs privately in your browser.
See the projection
Get a year-by-year chart showing your net worth from now through age 100. Green, yellow, or red — you'll know where you stand instantly.
Model & export
Test different settlement terms to find which saves you the most money, compare offers side-by-side, and export a report for your attorney.
Every projection is deterministic — same inputs always produce the same outputs. Results are estimates based on the assumptions you provide.
See what a Pro analysis looks like
We built a complete Pro analysis for a fictional person named Sarah. Explore every section — charts, what-if scenarios, risk timeline, negotiation leverage — so you can see what’s included before running your own numbers.
You don’t need a $5,000 CDFA retainer to understand your own numbers
Start with the free projection. If the numbers raise questions you can’t answer, upgrade to Pro for $19 — one-time, no subscription — and discover which settlement terms could save you thousands.
Not financial or legal advice. DivorceSmart is an educational planning tool. Always consult a qualified attorney and financial advisor before making settlement decisions.