Division of Property in a Michigan Divorce

By: Jim Hubbert, Esq. | Posted: 15th November 2010

A number of properties may be jointly accumulated over the course of a couple’s marriage. Dividing property during a Michigan divorce can be a contentious and complicated affair, which makes it beneficial to have a Michigan divorce attorney on your side. This is particularly true if you would like to have control over the matter yourselves, instead of allowing a court to dictate these deeply personal decisions of who gets what.

Complicating the matter of property division in Michigan is that the Michigan statutes do not give a clear definition of what is considered “marital property” in a Michigan divorce. The overriding rule is that the division of the property be equitable, which does not always mean equal. Again, having a Michigan divorce attorney as an advocate in this often-grueling process can make all the difference in the world.

Understanding Marital Property as it Relates to Michigan Divorce

A crucial step when considering division of property involves differentiating between what assets will qualify as marital property and which qualify as separate property.

If an asset initially began as separate property belonging to one spouse, but increased in value as a result of the other spouse’s active contribution, then that property may be categorized as marital property.

The valuation process of marital properties typically occurs during trial or the time when a divorce judge is present. A house, car, land, business or other belongings will most likely be considered marital property if those items were acquired at some point during the marriage.

Understanding Separate Property as it Relates to Michigan Divorce

In most cases, assets the couple acquired prior to marriage (during the cohabitation period) are not considered marital property unless, as previously mentioned, there was an increase in value as a result of the other spouse’s efforts. As the term suggests, separate property includes assets the couple does not jointly own.

Some common items that usually fall in this category include:

* assets acquired before marriage; and
* assets or property one spouse received through inheritance.

Additionally, if a separate property increased in value after a marriage and the other spouse only passively contributed, it remains in the separate category. In some rare instances, separate property may be divided if the marital property is not sufficient on its own. This decision would be made in a legal proceeding.

To better understand how marital and separate property function, let’s take an example of a plausible Michigan divorce and property division scenario. Let’s say Maria and John have been married for 15 years. During the 9th year of their marriage, John and Maria purchased a house together in West Bloomfield. This would be considered marital property and subject to division.

On the other hand, let’s say that when Maria was 13 years old, she inherited $40,000 from her grandmother and the money was immediately put into a moderate-interest bank CD, where it has remained untouched. This money would not be considered marital property, because it was acquired before marriage and it is a form of inheritance.

Guidelines for Division of Property in Michigan

While there are no specific criteria applied in the division of property in a Michigan divorce, a judge will take into consideration a number of circumstances that are unique to the couple.

The list below has some of the criteria most commonly considered during a property division case, including:

* age;
* length of the marriage;
* lifestyle;
* each spouse’s contribution to the marital assets; and
* needs of each party.

Again, there is no definite rule as to what factors must be considered. Each Michigan divorce is unique and your Michigan divorce attorney can talk to you about how your situation will be affected by the division of property.

Special Marital Property in a Michigan Divorce

In addition to the typical kinds of marital property, there are some special properties that may be divided in different ways during a Michigan divorce.

Listed below are some of the most commonly seen types of special marital property in a Michigan divorce:

* Workers’ Compensation & Social Security Disability – If the amount is awarded for injuries incurred during the marriage, it may be categorized as part of the marital property. Social Security benefits are not considered as a marital asset, but may be called into question for child support or spousal support reasons.
* Stocks – Generally, stocks are categorized as a marital asset unless they have not yet matured.
* Retirement Benefits & Pensions – Retirement assets are not categorized as marital property unless an agreement is made between both parties. A divorce judiciary council will award every specific component of a pension plan. Unless the amount awarded from the marital estate is not sufficient for a spouse, benefits earned outside of a marriage are not divided in a divorce.
* Tort Lawsuit Settlements – Damages awarded in this kind of lawsuit are considered as marital property. However, non-economic damages awarded for pain and suffering are only for the person who sustained injuries.

A Michigan divorce attorney can work with you to evaluate any special property within your marriage and advocate for the most fair and equitable division of those properties.

Hiring an Divorce Attorney in Michigan

If you’re going through a divorce and have encountered property division issues, it would be best to speak with a qualified Michigan divorce attorney who knows the ins and outs separate and marital property. Contact the Michigan divorce attorneys at the Law Offices of Graham & Hubbert for a no-cost initial phone consultation – 248-454-1860
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