Even if your marriage ends in divorce, your assets do not have to suffer. If you understand the law and exercise caution, you can avoid starting over financially after your divorce. State rules vary, so pay close attention to how things operate in your state. This article will walk you through what you need to know about property distribution in Michigan.
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Learn more about the division of property in Michigan.
How Michigan Divide Assets During a Divorce
In Michigan, the distribution of property during a divorce is not strictly 50/50. Rather, this is determined based on what the court deems equitable for both spouses, which is referred to in the law as “equitable distribution.” In Michigan, this is usually the most contested phase of the divorce process.
A court will divide property between spouses depending on what is deemed equitable. This is not a simple 50/50 division. The judge will evaluate how long the marriage lasted, how much each spouse contributed to the overall property, the spouse’s age and health, their needs and requirements, and how each party behaved during the marriage. Obviously, this includes adultery.
Categorizing Assets and Properties During Divorce
The laws of Michigan concerning the split of assets categorize property as either “marital” or “separate.” Generally speaking, marital property is susceptible to division, whereas separate property is not. Before splitting the property, courts must decide which category each item falls within.
The term “marital property” refers to the assets gained or acquired during the marriage. Homes, vehicles, furnishings, works of art, retirement funds (such as 401(k)s), businesses, pension plans, and bank accounts are all common examples.
It should be noted that this applies to assets acquired by either party during the marriage, even if they are not received until after the divorce decree is issued. For instance, if you get a bonus or commission while you’re married, it will be treated as marital property, even if you filed for divorce or are already divorced before the bonus or commission is paid.
Furthermore, it makes no difference which spouse officially earns the asset. Consider a savings or retirement account that is solely attributed to one spouse’s wages during the marriage. This account is still considered marital property under the law.
The term “separate property” refers to all assets acquired or earned before the marriage, as well as any gifts or inheritances received at any time.
Occasionally, determining whether an asset is marital or separate might raise complicated legal and financial issues. If you and your spouse are disputing the nature of a piece of property, you should consult an expert family law attorney for assistance.
Contact a Divorce and Property Division Expert Today
Numerous legal factors are involved in the divorce procedure; therefore, it is strongly advised to consult an expert who is well-versed in Michigan Family Law. If you are contemplating a divorce, contact Goldman and Associates Law Firm at (248) 590-6600 or schedule a free consultation today to discuss your options.