The forward put pen to paper on a one year deal on Friday, after enjoying an impressive return to Fir Park in February.
And the 30-year-old says the chance to be close to his family and play every week were the key factors in his decision to spend the coming season at the club where he launched his career.
McFadden said: "I had a few offers over the summer but it didn't feel right.
"I'd have had to uproot and take my family away and I wasn't prepared to do that.
"I've turned down better offers financially.
"Once that was taken out of the equation it came down to the fact that I knew I would enjoy it here and I know I'll play if I'm fit and doing well.
"I get to play every week and I've got a good relationship with the club and the fans so it was a no-brainer."
McFadden has not featured for the national team since 2010 but hopes impressive displays for Motherwell could help resurrect his Scotland career.
He added: "If I'm playing well and playing the way I can play then one of my aims is to get back in the squad.
"As long as I do my part and play well and play every week it will be up to the manager."
In terms of the aims of the team as a whole, McFadden believes the Steelmen must strive to win silverware this season.
He said: "We've had relative success under the manager and the one thing we have to do now is push on and try to get to a cup final or win a cup.
"It's got to be a goal. We are not going to finish first, Celtic have got the resources to beat anybody in the league.
"Realistically we are not going to finish first in the league but we've got a realistic chance of winning a trophy and that's where we need to improve year on year."
Motherwell also secured the capture of another one-time Scotland international, Stephen McManus, this week.
McFadden said: "When I spoke to him I knew it was the best option for him.
"Similar to myself, he's closer to home.
"Even if I wasn't going to be here, I knew this was the best place for him.
"It's great to get someone of his experience on board and he can only help us with the season ahead."