2017 Real Estate Market Outlook

Michigan Abolishes The Right of Dower

In the spirit of keeping you informed of the current real estate laws, here is the information on why Michigan has abolished the right of dower and how it could affect you.

Michigan lawmakers have abolished Michigan's dower laws effective April 7, 2017. Historically, property owned by a married man alone would require the signature of his wife to transfer or mortgage a property. Beginning on April 7, 2017, spouses that hold property in their name alone will be free to transfer and mortgage the property without the signature of the other spouse. The only remaining exception is the Michigan Homestead law that requires the signatures of both spouses on a non-purchase money mortgage that will cover their homestead (principal residence).

The law eliminating dower is not entirely retroactive. The new law does not apply to the dower rights of a surviving spouse whose spouse died before the effective date of the new law. Put simply, dower will still apply if a spouse died before April 7, 2017.

Michigan is the last state to eliminate dower for one spouse, although some states did extend it to both spouses. However, modern estate laws, including the laws in Michigan, were enacted to provide more comprehensive solutions to surviving spouses and have essentially made dower laws obsolete. Recently, dower laws were used most often as a way to invalidate a mortgage in the event of a foreclosure (a common occurrence during the last Great Recession). The proponents for the elimination of dower have explained that its elimination simplifies the transaction process and provides more certainty in real estate transactions.

History of Dower in Michigan: 

• Michigan's dower law was created in 1846 and it entitled a surviving widow to one-third of her husband's real property during her lifetime. This dower interest (a one-third interest for life for the life of the wife) remains unchanged today. In contrast, the more modern probate laws of Michigan give a widow better choices: 
• If her husband died without a will, Michigan's estate law gives the surviving spouse the first $148,000.00 of her husband's estate and one-half of the remainder, or she could choose to take her dower right instead; or 
• If the husband had a will, the widow could take what was bequeathed to her in her husband's will, take one-half of the estate or the share that she would have received had the husband not left a will, or take her dower right.

As one can see, dower would rarely be elected under the more modern estate laws. These reasons, and others, led to its elimination in all states, which now includes Michigan.

Source: Tom Cronkright, Sun Title