When a couple divorces, they must divide their marital property. Couples can negotiate a division through a pre/post-nuptial or divorce/property settlement agreement. Alternatively, they can submit the property question to a court for resolution. A divorce attorney can help you understand your legal rights and the rules under Michigan law that govern property division in divorce.
Understanding Equitable Distribution in Michigan
Michigan uses an equitable distribution system for property division in divorce. Under equitable distribution, a Michigan divorce court must divide a couple’s marital property equitably or fairly, which does not necessarily mean equally. Instead, courts can consider various factors in determining a fair split of the marital estate, such as each party’s contributions to the marriage or the acquisition of property, the duration of the marriage, and the spouses’ respective financial and personal circumstances.
Michigan’s equitable distribution system differs from other states that use a community property system of property division in divorce. In a community property system, spouses have equal interests in marital property, which requires even division of the marital estate in divorce in community property states.
Factors That Affect Property Division
Here are some of the factors that may affect a Michigan court’s equitable distribution decision in a divorce case:
- The duration of the marriage
- The contributions of each spouse to the marriage, including both financial and non-financial contributions (e.g., supporting a spouse’s educational/business goals or performing housekeeping/childrearing duties)
- Each spouse’s earning capacity and future financial needs
Courts must also consider whether assets owned by a couple qualify as marital or separate property. Equitable distribution only divides marital property; each spouse gets to keep their separate property.
Marital vs. Separate Property
Marital property subject to equitable distribution in Michigan includes all property acquired by the couple during their marriage. Marital property may also include the growth in value during the marriage of assets owned by a spouse before marriage. Separate property includes all property owned by a spouse before marriage and some types of property acquired during marriage, such as inheritances or separate gifts. However, spouses can convert separate property into marital property by commingling separate and marital property (such as using separate property to fund part of the purchase price of marital property).
Can a Spouse Receive More Than 50 Percent?
Under the equitable distribution system, a spouse can receive more than 50 percent of the total marital estate. A court may award a spouse a majority of the marital estate to reflect their contributions to the marriage or when the spouses have a significant disparity in earning capacity or financial resources. However, courts may also consider any alimony award in a divorce case when determining the need for an uneven property division to provide for a spouse with a weaker financial position.
Contact a Divorce Attorney Today
If you’re going through a divorce in Michigan, you need experienced legal advocacy to help you protect your rights and interests. Contact Rodnick, Piraino & Ingber, PLLC today for a confidential consultation with our knowledgeable attorneys to discuss your options during property division in divorce.
