When couples decide to divorce in Michigan, one of the most challenging aspects is determining how property and assets will be divided. Understanding how this process works can help you know what to expect and how to protect your interests. In Michigan, property division follows an “equitable distribution” approach, but what does that mean?
Our Plymouth family law attorneys at Steslicki & Ghannam, PLC break down the key elements here.
What Does “Equitable Distribution” Mean?
Michigan is an “equitable distribution” state, meaning property and assets are divided fairly, though not always equally, between spouses. The goal is to reach a fair settlement based on each spouse’s situation rather than simply splitting everything down the middle. The court considers several factors to ensure a just division, which may result in one spouse receiving a more significant portion of the assets.
Understanding Marital vs. Separate Property
Before dividing assets, the court must determine whether each item is considered “marital property” or “separate property.”
- Marital Property: Assets and debts acquired during the marriage, regardless of who paid for it or whose name is on the title. Examples include a jointly owned home, retirement accounts accrued during the marriage, and vehicles purchased while married.
- Separate Property: Assets or debts acquired before the marriage or through inheritance or gifts are typically considered separate property. However, if the separate property has been mixed with marital property—such as using inheritance funds to renovate the marital home—it could be treated as marital property
What Factors Influence Property Division During a Michigan Divorce?
When dividing marital property, the court looks at several factors to determine what is fair,
That may include:
- Length of the Marriage: The longer the marriage, the more likely assets will be evenly divided.
- Contributions to the Marriage: This includes financial and non-financial contributions, including homemaking or childcare.
- Economic Circumstances of Each Spouse: The court considers each spouse’s ability to support themselves post-divorce, which can impact how assets are divided.
- Age and Health of Each Spouse: If one spouse is older or has significant health issues, they may receive a larger share to ensure stability.
- Fault in the Breakdown of the Marriage: Michigan is a no-fault divorce state, but the court may consider fault, such as infidelity, when dividing property in some cases.
What Happens to the Family Home During a Michigan Divorce?
The family home is often one of the most significant assets in a divorce.
Options for what happens to the home during a Michigan divorce typically include:
- Selling the Home: The proceeds are divided between the spouses.
- One Spouse Buying Out the Other: If one spouse wants to keep the home, they may buy out the other spouse’s share.
- Continued Joint Ownership: Sometimes, spouses agree to retain joint ownership until a specified event, such as children finishing school.
Dividing Retirement Accounts and Pensions During a Michigan Divorce
Retirement accounts and pensions accumulated during the marriage are generally considered marital property. These accounts are often divided using a Qualified Domestic Relations Order (QDRO), which allows for the division without tax penalties. It is crucial to understand the long-term impact of dividing retirement funds and how it can affect your financial future.
How is Debt Divided During a Michigan Divorce?
Debt incurred during the marriage is typically divided between spouses in the same manner as assets. However, separate debt, such as student loans taken before the marriage, usually remains the responsibility of the spouse who incurred it.
Navigating property division during a divorce can be complex, especially if there are significant assets or disputes over what marital versus separate property is. Working with our experienced Michigan family law attorneys is essential to help ensure your rights are protected and you receive a fair share of the marital property.
Contact Our Dedicated Plymouth Divorce Attorneys Today
Contact our dedicated Plymouth divorce attorneys today to learn more about how we can help solidify your financial future during this challenging time. Whether you’re concerned about dividing assets, negotiating spousal support, or understanding your rights under Michigan law, our experienced team is here to provide the guidance and representation you need.
