It appears that your ex earns more money than you do. If your ex earns more than you do, you start to wonder what rights you have in a Michigan divorce. Even if your ex earns more money than you do, it might not matter. You are entitled to half of all assets that you deem to be marital in the event of a divorce.
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In the state of Michigan, each spouse is eligible for a half-share of all assets accumulated during the marriage. Child and spousal support will be more influenced by who makes more money than who. The amount of child support or spousal support will be determined and determined using a formula by the court.
What Are the Usual Financial Issues in a Divorce?
You are not alone if you are getting ready for a divorce in Michigan. The Michigan Department of Health & Human Services or MDHHS reported that about 20,000 marriages end in divorce each year in the state. Divorce is challenging. Divorce-related financial concerns can be particularly difficult.
Marital Assets
You and your spouse must agree on who gets to keep what as part of the divorce process. One of the most controversial components of a divorce case is frequently the division of property. The property and assets of a divorcing marriage are distributed “equitably” in Michigan. To be clear, this indicates that a 50/50 split is not legally required, even though it is possible. The marital property will be distributed fairly.
Common property is not recognized in Michigan. In Michigan, the “equitable distribution” principle is used to divide marital property. In states with community property, asset distribution is meant to be as equal or as close to a 50/50 split as is reasonably possible. Equitable distribution is the division of property in accordance with an assessment of what is fair in each circumstance.
When a couple files for divorce in a state that has community property rules, the court must split the marital estate equally. In states with equitable distribution, judges are free to deviate from a 50/50 division. Though Michigan is an equitable distribution state, the courts normally distribute assets fairly and equally.
Marital Debts
Debts and liabilities in a divorce in Michigan must also be shared, just like property and assets. Debt division can lead to disagreement. According to Michigan law, dividing a debt “equitably” is the same as dividing marital property. Either the spouses will receive an equal allocation of the debt or there will be an unequal distribution.
In Michigan, the following factors are taken into consideration when dividing a couple’s debt:
[ a] How the Debt Got Incurred. When one spouse has a gambling habit that resulted in debt, for example, some debts may be distributed exclusively to the person who incurred them.
[ b ] Why the Debt Came About: Sometimes the cause of the debt is taken into consideration, such as when it was incurred during an affair.
[ c ] Your Capacity to Pay the Debt: The court considers the income and potential earning capacity of each spouse to make sure that no one is given an undue burden.
[ d ] Where the Asset Is Going: If the family automobile goes to one spouse, it’s likely that the debt from the car loan will go with them as well, in order to maintain a fair property division.
Child Support
Child support is frequently paid by the non-custodial parent to assist defray some of the costs associated with raising the child. These expenses may involve the cost of housing, clothing, and food. Furthermore, expenses for things like healthcare, transportation, and education are covered through child support.
These costs must be split evenly between the parents if custody is shared. This suggests that the expense of raising a child is shared by both parents. You can still be obligated to pay child support even if you earn more money or have fewer expenses than the other parent. Child support payments are based on a number of factors, including your income, how much time each parent spends with the kids, and how much it will cost to raise the children.
You are required to pay child support if your child lives with you less than half the time. In general, if a child resides with one parent for more than 50% of the time, the other parent is not required to pay child support.
Child support calculations will use each parent’s income to determine who will be responsible for paying child support and how much they will pay in a shared custody arrangement with 50/50 custody.
Spousal Support
Spousal support or alimony is intended to give financial stability to a spouse who earns less than their partner. Judges consider a number of factors for determining alimony, such as the behavior of the parties while they were still married, their separate career histories, and more.
The amount of alimony is determined by taking into account the duration of the marriage, the difference in income, and any discretionary income. Gender is not taken into account while determining alimony. A man might be granted alimony. Yes, Michigan does have that position. You can talk about alimony if your marriage has lasted at least 25 to 30 years. The court is more likely to consider alimony in a lengthy marriage than in a short one.
In order to receive alimony, one spouse must be in financial need and the other must be able to pay it. The standard of living that was established for both partners during the marriage, its length, both partners’ potential earnings after the divorce, and the amount of time the dependent partner will need to complete their education or acquire a job-related credential in order to maintain their standard of living will also be taken into account by the judge.
The needs and financial capacity of each spouse will also be taken into account, as well as the estates and property of both partners. Following a divorce, men and women now have equal rights to spousal assistance under the 1979 Supreme Court decision, but only while they are making efforts to become self-sufficient. Few men request alimony; instead, most prefer a one-time payment from the woman if she is significantly wealthier.
When Does Income Matter in a Divorce?
In a divorce, income is most relevant in the determination of child and spousal support (alimony). Since both child and spousal support depends on a continuing and changing financial obligation it cannot be based on the value of assets but more on the sources of income.
For the court to be able to determine an equitable amount for child and spousal support, it will depend on the accuracy and truthfulness of information gathered during the discovery process. Disclosure of financial information from both spouses is critical for the determination of a fair amount for both spousal and child support.
When one spouse is primarily in charge of the household finances, the other spouse faces a disadvantage and must invest more time and energy in order to identify all of the assets that are subject to division in a divorce case. Major revisions to the Michigan Court Rules were adopted by the Michigan Supreme Court and took effect on January 1, 2020. The changes were made in an effort to speed up and simplify the exchange of information in divorce cases and to ensure that both spouses make a complete financial disclosure at the very beginning of the court process.
To use the child support calculation, you must know the net incomes of both parents as well as how much time each parent spends with the child. To calculate net income, all gross income is subtracted from particular adjustments and deductions for alimony received, income taxes, and additional payments and premiums made.
Your gross income includes your wage, earnings, commissions, overtime pay, and bonuses. Any royalties, tips, dividends, military specialty pay, and, if they happen frequently enough, winnings from gambling are also included.
Unlike in child support where there is a Michigan Child Support Formula Manual, spousal support or alimony is determined on a case-to-case basis.
What Am I Entitled to in a Divorce?
So when you really look at all those mentioned, marital assets, marital debts, child support, and spousal support (alimony) there’s only one aspect of divorce clearly disclosing what you are entitled to. It’s marital assets. And you are entitled to whatever the outcome of the property division which is 50% or half of whatever assets you accumulated in your marriage. Of course with the asset comes the debt that made the acquisition of the asset possible. Clearly, you deserve half of anything you created, earned, and accumulated during your marriage.
What kind of assets or properties are we looking at? Where looking at the marital home, pension or retirement plans, and business as examples. Although the statutes are clear about the 50/50 split in marital assets, circumstances may change the proportions of this division.
If you and your spouse cannot agree on how to divide your assets, the judge will make the decision. Courts in Michigan are required to divide property fairly. Fair, in general, means everyone gets about half of everything. However, a judge may decide to split marital property differently in other situations that are equitable.
Your property may be divided unequally if one spouse was more to blame for the divorce or if that spouse demanded more assets. Sometimes one partner will amass more marital assets while the other will amass more marital debt.
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Goldman & Associates Law Firm is here to with information about Child Custody and Divorce in the State of Michigan.