Property division disputes can be some of the most complicated issues within a divorce action. Ensuring that you receive a fair and equitable property distribution requires clear-headed vision and a common-sense approach. The Michigan family law attorneys at Bebout, Potere, Cox & Bennion, P.C., know how to balance compassion and advocacy to help you protect your interests in your marital property.
Michigan's Equitable Property Distribution Laws
Michigan is what is called an “equitable property division” state. This means that, in a divorce action, the Michigan courts are not required to divide the marital estate 50/50 or precisely equally. Instead, a family court judge can divide up the marital assets and liabilities in any way he or she thinks is fair given the facts and circumstances in the case. This includes all assets accumulated by either party during the marriage, such as:
- Marital home
- Real property, rental homes, and vacation properties
- Vehicles
- Recreational vehicles and boats
- Furniture
- Jewelry
- Collections
- Personal property
- Bank accounts
- Stocks and Investment accounts
- 401ks, IRAs, pensions, and other retirement accounts
- Cryptocurrency
- Business interests
The Court can also order the parties to divide up marital debts such as:
- Mortgages
- Auto Loans
- Credit card debts
- Utility balances
- Medical debt incurred during the marriage
- Student loans incurred during the marriage
It does not matter if the property is titled in only one person's name. If it was obtained during the marriage or used for family purposes, it can be divided by the Michigan family courts.
Separate Property Distribution
Michigan does recognize a person's “separate property” apart from the marital estate. That means you may be able to keep possession of certain property, with no offset to your spouse, if that property was:
- Obtained prior to the marriage
- Inherited by one spouse during the marriage
- Given as a gift to one spouse during the marriage
- Certain personal injury awards
- Veteran disability benefits (but not pensions of offsets)
However, in each of these cases, the property must have been maintained separately from the marital estate. If you and your spouse combine these separate property assets with marital funds, or use it for marital purposes, it could become “commingled” and be subject to division by the courts. Similarly, if your spouse actively contributes to an increase in value of the asset (such as paying off the mortgage on a premarital home), the judge may find it fair to award him or her the benefit of that contribution.
Property Division Factors
After carving out the separate property of either party, the Michigan family court judge will apply several factors to reach a fair and equitable property division:
- the duration of the marriage,
- contributions of the parties to the marital estate,
- the age of the parties,
- the health of the parties,
- life status of the parties,
- necessities and circumstances of the parties,
- earning abilities of the parties,
- past relations and conduct of the parties (including fault), and
- general principles of equity.
Again, it does not have to result in a 50/50 split, but the result must be equitable, and the Court must explain any deviation from an equal split.
Strategies for Receiving a Fair Property Division
Michigan law gives judges a lot of discretion in creating a fair property division. But that means it can be hard to predict just what the judge will do in your case. If you want to ensure that you keep certain property, or get a fair outcome, you and your attorney should:
Identify Top Priority Properties
Be clear with your lawyer about your most precious property. Whether it is valuable in a financial sense or simply sentimental, understanding what is most important to you can help your lawyer advocate for a division that feels fair.
Establish Values of Properties Early
Many bigger-ticket items, like homes, vehicles, and businesses can be hard to put a value on at the time of divorce. Appreciation in the value of a home, depreciation of a vehicle over time, and the difficulty putting a market value on an ongoing business all mean that experts may be needed to establish the property's value. Getting an expert valuation early in the case can help you negotiate for a fair property distribution.
Use Mediation and Negotiation to Resolve Property Division Disputes
You and your spouse will have more control over your property division if you can come to a resolution yourself. Sometimes parties cannot agree and the matter goes to trial. But in most cases, with the help of an experienced family attorney, you can reach a resolution that both parties feel is fair and avoids putting either one at risk of financial ruin.
Get Help Getting an Equitable Property Division from a Michigan Family Lawyer
At Bebout, Potere, Cox & Bennion, P.C., we care about you and your family. We help individuals and families in Rochester Hills, Rochester, Troy, Lake Orion, Oxford, Oakland County, Macomb County and throughout Southeast Michigan strategize, negotiate, and obtain fair resolutions to property division disputes during divorce. Call us at 248-651-4114 or contact us here to speak to an attorney.