Assisting Clients With Divorce And Property Division

The decision to get a divorce is never easy on an individual, nor is it simple; however, that does not mean that the process must be stressful and difficult to complete. There are processes and systems in place to help assist in the divorce process. Typically, one of the most litigated issues in a divorce is the division of marital assets and debts.

What Is Considered Marital Property in Michigan?

The property you and your partner own with each other is called marital property.

Marital property may be:

• Dwellings
• Vehicles
• Home furnishings
• Jewelry
• Art
• And more

Joint debt is also considered by the courts. Joint debt may be:

• Home loans
• Financial loans for vehicles
• Credit card debt
• Personal loans

How Does Michigan Divide Marital Property & Debts?

Michigan law demands a fair property division. Fair typically indicates that each individual person gets around half of everything. In some cases, if an agreement cannot be reached, it may be up to a judge to determine what is fair and divide marital property accordingly.

Depending on the case, the marital property may be split in favor of one party, that is if one individual is even more at fault for the relationship ending or if one individual requires additional assets to maintain their lifestyle. When dividing marital property, we consider our clients wishes first and foremost.

As long as both parties are agreeable to a particular division of property, a judge will approve it so long as it is reasonable. For example, if both individuals have 401ks that are of similar value, rather than split each 401k, both parties can agree to keep their own retirement accounts.

6 Things To Consider Before Dividing Property

If you are considering divorce or have already filed, one of your first questions will surround when to make financial decisions. After all, dividing assets after a marriage is never easy, and the process comes with many difficult questions.

Not sure how to proceed with dividing marital property? Unsure what factors the judge will keep in mind? Read more to find out.

1: Understanding Marital Property Is Essential

You need to learn more about marital property before you can understand how it is divided. Marital property is generally referred to as community property, and it includes assets and liabilities that were acquired during the marriage. During the divorce process, you will be asked to create a list of your community property, and the court requires that you be completely thorough.

If you have acquired gifts or property while married but that are considered just yours, you need to present evidence of this ownership to the court during the divorce proceedings if any argument exists to the contrary.

2: Hiding Property Is Not Legal

Failing to disclose any community property, including debts, assets, or income, during the court proceedings can land you in hot water with the judge. You may be fined punitive damages and be forced to abide by court sanctions.

The assets that you absolutely need to disclose include employee benefits (like retirement accounts), capital losses from previous tax years, and even cemetery plots. The value of these items might be higher than you expect. Surprisingly, you also need to disclose information about collections, memorabilia, club memberships, and gifts from each other.

3: Communication Is Crucial

Even if you and your spouse are going through a difficult time, you need to prepare to communicate, especially about your assets and income as you divide your property. One tool that may be helpful for communication is mediation.

Mediation is a beneficial step for anybody who wants some say in how to divide marital property, as it gives you more control over how you divide assets and debts as a couple.

4: Pets Are Property

You should understand that while many people consider their pets to be their family members, the court treats pets as property. If your divorce goes to court, the judge may consider giving the pet to the individual with a history of caring for the pet or the individual with the more flexible schedule to care for the pet.

If you want to share custody of your pets, you may benefit from mediation, in which you can create a schedule for trading your pet back and forth.

5: Judges Don’t Consider Emotional Attachment

Simply because you are emotionally attached to an item does not mean that the court will consider it yours. The judge’s main consideration is for state law. For people with many emotional attachments, mediation is a way to work together in the hopes of dividing assets according to desires.

6: Property Is Divided Fairly

In Michigan, the judge must divide assets following the equitable distribution principle. While property is divided fairly, this does not mean that property is divided equally. The court will consider the financial contributions of each spouse to the marriage in addition to the spouse’s ability to support themselves after the divorce.

Factors the judge will consider include marriage length, property brought into the marriage, each partner’s standard of living, each partner’s emotional health, earning potential of each partner, and the contribution of each partner to the education of the other.

Additionally, the judge considers any children involved in the divorce proceedings. Judges try not to interfere with the lives of the children as much as possible.

Get Help With Property Division In Divorce

For personalized information on how our attorneys can help you during your property division case, call us at 888-473-1289 or fill out our online form. From our office in Lansing, we represent clients in family law matters.