Each state has its own laws governing property division in divorce cases. Some follow “community property” laws, which means spouses share equal ownership of all marital property and split all assets and debts 50/50 when divorcing. However, Michigan follows the “equitable distribution” rule, which means marital assets and debts are divided fairly but not necessarily equally.
This guide from Herbert Machnik Law Firm can explain equitable distribution and what you can expect from the property division process during a divorce.
How Does Equitable Distribution Work in Michigan?
Equitable distribution gives the court flexibility when dividing assets and debts. Instead of dividing everything straight down the middle, the judge examines the entire financial picture and creates a plan designed to treat both spouses fairly.
While some spouses can reach their own agreement over property division, that’s not always possible. Sometimes, it’s up to the court to evaluate incomes, marital contributions, and individual circumstances to determine an equitable split.
In many cases, a fair result looks close to a 50/50 split. In others, courts find that an uneven split is actually the fairest outcome for both parties.
For example, if one spouse stayed home to raise the children and support the other spouse’s career rather than pursuing their own career, courts may determine that a perfect 50/50 split would not be fair to the stay-at-home spouse whose earning power was significantly diminished by the sacrifices they made for their family.
What Counts as Marital Property in Michigan?
Michigan law separates property into two categories: marital and separate. Only marital property goes into the division process, so the classification stage plays a major role in the final outcome of the divorce.
Marital property includes:
- Income that either spouse earns during the marriage
- Real estate the couple buys after marrying
- Retirement savings, pensions, and investment growth during the marriage
- Vehicles, furniture, bank accounts, and personal property the couple acquires
- Business interests that grow because of efforts or investments during the marriage
Separate property includes:
- Assets a spouse owns before the marriage
- Inheritances or gifts given to one spouse alone
- Personal injury awards that compensate for pain and suffering
How Do Courts Decide What’s “Equitable”?
There is no one-size-fits-all approach to deciding what’s equitable in property division. Courts must review a long list of factors to make a fair determination. Those factors include:
- Length of the marriage
- Contributions from each spouse, including childcare and homemaking
- Each spouse’s earning ability and financial needs
- Age and health
- Conduct that affects the couple’s finances, including hidden spending or waste
Using these factors, the courts can create a clearer picture of what a fair but not necessarily equal split might look like.
How an Attorney Can Help
Equitable distribution gives the court a lot of sway over your future. A skilled divorce attorney can protect your rights and fight for your desired outcome. Your attorney can help by:
- Identifying all marital assets and debts
- Gathering financial records and valuations
- Tracing separate property and preventing improper claims
- Negotiating a fair settlement
- Challenging hidden assets or misleading financial disclosures
- Building a strategy that fits your specific goals
A skilled attorney doesn’t just offer deep legal knowledge and extensive experience. They also provide critical support during a stressful and emotionally taxing time.
Contact a Michigan Divorce Lawyer Today
Property division in a divorce can have a tremendous impact on you and your family’s financial future. A knowledgeable Michigan divorce attorney can protect your interests, explain your rights, and fight for the outcome you and your family deserve. Contact Herbert Machnik Law Firm today for your confidential consultation.
