Divorce is never a simple process. It’s an emotionally challenging and life-altering experience. One of the most complicated aspects of divorce is determining how property will be divided. In Michigan, understanding how property is categorized and divided during a divorce is essential to ensure a fair outcome.

Here’s a breakdown of Michigan divorce laws regarding property, focusing on the key concepts of separate and marital property and how they’re divided.

Separate Property vs. Marital Property

In Michigan, the distinction between separate and marital property is crucial for determining how assets are divided. This division directly affects what each spouse is entitled to during a divorce.

What Is Separate Property?

Separate property includes assets that are not subject to division in a divorce. These assets typically consist of:

• Property owned by an individual before the marriage
• Gifts or inheritances received during the marriage
• Property acquired after separation or filing for divorce
• Any appreciation in value of assets that were initially separate

For example, if one spouse owned a condo prior to marriage, that condo would likely be considered separate property. Similarly, money inherited during the marriage would be separate property unless it was combined with marital assets.

What Is Marital Property?

Marital property, on the other hand, consists of assets acquired during the marriage, starting from the wedding day until the divorce is finalized. This includes anything obtained during the marriage, even if the couple has already separated or ceased living together. Additionally, if income is earned after the divorce is filed but is considered to have been earned during the marriage, it may still be classified as marital property.

How Separate Property Is Divided

Typically, separate property is awarded to the spouse who owns it. However, there are exceptions. If the non-owning spouse can prove they contributed to the property’s acquisition, improvement, or value increase, the court may consider it for division. For example, if one spouse helped improve a property that was owned by the other spouse before the marriage, they might have a claim to a portion of its value.

In some cases, the court may decide to divide separate property if it’s necessary to provide adequate support for the non-owning spouse, particularly when the marital property alone doesn’t meet their needs.

How Marital Property Is Divided

Marital property is more complicated to divide because of factors like appreciation, depreciation, and how assets were accumulated. Michigan courts use a date of valuation to ensure fairness and prevent either party from manipulating the value of assets.

Several factors influence the division of marital property, including:

• The length of the marriage
• Each spouse’s needs and earning capacity
• Contributions made toward acquiring property
• The reason for the divorce

The goal is to ensure a fair division that reflects the contributions of both parties, while considering future needs and financial circumstances.

Determining the Value of Property

Accurate valuation of property is one of the most important aspects of dividing assets in a divorce. Michigan courts rely on expert appraisers and financial professionals to assess the value of properties, businesses, investments, real estate, and other assets.

If there’s a disagreement on the value of specific assets, the court may bring in experts to provide impartial assessments. This ensures that both parties receive a fair share of the marital estate, based on the true value of the assets involved.

In conclusion, understanding the Michigan divorce laws regarding property division is essential for both parties. Whether it’s determining whether an asset is separate or marital property, or accurately valuing those assets, the divorce process can be complex. Working with skilled attorneys and financial experts ensures that each party receives a fair settlement that reflects their contributions and needs.