Property Division Lawyer in Michigan

One of the most common points of contention, when couples are getting divorced, is how their shared assets will be divided. Both spouses have an interest in keeping as much of their property as possible. But when spouses disagree over how marital property should be divided, it’s up to the courts to settle the issue. A Traverse City property division lawyer from Alward Fisher can help you navigate this process and reach an equitable resolution.

With more than 100 years of combined experience, our Michigan divorce attorneys can help you protect your fair share of marital assets and fight back against any unfair or unreasonable claims made by your former spouse. Contact us today to discuss the details of your situation.

How Do You Divide Property During a Divorce?

Under Michigan law, not all property has to be divided when couples get a divorce. It breaks down like this:

• Individual property – Any assets you acquired before getting married are usually yours to keep in their entirety, as long as you did not mix these assets with other assets you shared with your spouse (such as when an inheritance is moved into a joint account). Individual property frequently includes things like a car or home that a spouse owned prior to marriage, an inheritance from a family member (if it’s kept separate from shared finances), gifts meant for one spouse, personal injury settlements, and individual bank accounts. While individual assets generally go to the spouse who owned them prior to the marriage, the other spouse may have a partial claim if they contributed to increasing the value of or improving the asset in some way.
• Marital property – Marital property, also known as shared property, includes most assets acquired while you’re married to your spouse. In most cases, shared property must be divided equitably in a divorce. Marital property includes things like the marital home, any vehicles you and your spouse bought together, shared bank accounts, your home furnishings, any wages earned by you or your spouse while you were married, shared investments and the interest from them, and shared businesses.

Note that debts must be divided along with assets in a divorce. For example, if you and your spouse are still paying off the mortgage on your home, you will both most likely be responsible for paying some portion of that debt. Individual debts generally go back to whoever is responsible for them, assuming the debts have not become commingled during the marriage. How debts are divided in a divorce can have a significant impact on your financial future. So it is crucial to have a knowledgeable property division attorney looking out for your best interests.

How Assets Are Divided Under Michigan Divorce Law

Michigan law requires that marital assets be divided “equitably” and fairly during a divorce. However, equitably does not necessarily mean a 50/50 split of all your assets. Instead, couples will need to divide their assets in a way that reflects each spouse’s needs going forward while also accounting for other factors, such as which spouse has primary custody of any children from the marriage.

Some of the factors that can affect how your marital assets are divided in a divorce include:

• Marital fault – Michigan is a no-fault divorce state, which means you don’t need a reason to get a divorce other than the fact that you can’t get along with your spouse anymore. However, if one spouse is more to blame for the dissolution of the marriage (by committing adultery or behaving cruelly toward the other spouse, for example), then they’re more likely to receive less of the marital property.
• Each spouse’s income and earning capacity – If one spouse earns significantly less than the other, the spouse who earns less may get a greater share of marital property to make up for this disparity. The goal is to have both spouses enjoy a reasonable standard of living once the divorce is finalized.
• Each spouse’s health – A spouse with a serious illness or injury may receive more assets in a divorce to cover the cost of any medical treatment they may need.
• The size of the marital estate – Generally speaking, the larger the estate, the more likely it is that shared assets will be divided evenly.
• Anticipated inheritance – If one spouse is anticipating a large inheritance, they may receive less in marital property because they will have other financial resources they can rely on.

Process for Dividing Assets

There are three basic methods for dividing marital assets in a divorce. They are:

• Working out an agreement with attorneys – The easiest, least expensive, and fastest way to divide marital assets in a divorce is to keep the courts out of proceedings as much as possible. If you’re on good terms with your spouse, your attorney, and your spouse’s attorney may be able to work out an agreement that satisfies both of you without needing to go through lengthy court hearings. We always recommend trying to reach an agreement outside of court if possible.
• Mediation – In some circumstances, the judge may order both spouses into mediation with a neutral third party in an attempt to resolve outstanding issues. If this happens, both spouses and their attorneys will be required to meet with the mediator, who will attempt to bridge the gap between each spouse’s demands. If an agreement is reached, it can be approved by the judge, and the case can move forward.
• Trial – In cases where couples cannot reach an agreement on how shared property will be divided, it’s up to the courts to settle the issue. The judge will look at various factors and make a decision on which assets will go to each spouse. This is the most expensive and time-consuming option, so we will work on your behalf to avoid a trial, if possible. However, sometimes taking a case to court is the best option for pursuing a fair resolution.

Regardless of the process used to divide shared property, the judge overseeing your divorce will need to approve the final agreement. Once the property division issue and other matters have been settled, the judge will hand down a Judgment of Divorce, and your case will be over.

How Prenuptial and Postnuptial Agreements Affect Asset Division

In most divorce cases, the shared property must be divided equitably between spouses. However, some couples opt for a prenuptial or postnuptial agreement when one spouse has significantly more assets than the other at the time of marriage. If the prenuptial or postnuptial agreement has been drafted and signed correctly, it may allow one spouse to keep most or all of the marital property.

However, there are complex rules surrounding prenuptial and postnuptial agreements. We recommend speaking to an attorney before drafting one or if such an agreement may apply to your divorce case.

Complexities of Property Division in High Net Worth Divorces

Figuring out how to divide marital property can be complex in any divorce. But there are often extra complications involved in cases where couples have a high shared net worth or one spouse has significantly more assets than the other. Some of those additional complications include:

• Businesses – A business can be an extremely valuable asset. But whether one spouse gets to keep it or some other agreement must be reached depends on each spouse’s level of contribution toward maintaining and improving the business.
• Retirement accounts – In general, retirement accounts must be divided equitably, just as with most marital property. However, certain types of investments may be considered individual property.
• Hidden assets – One spouse may try to hide assets to avoid having those funds declared as shared property.
• Rare assets – Works of fine art and similar assets can be hard to divide, which can complicate the divorce process.

Property Division FAQs

Here are some of the most common questions we get about divorce and property division in Michigan:.

How Our Traverse City Property Division Attorney Can Help You

No matter how simple or complex property division may seem in your divorce, getting help from a seasoned attorney is vital. A Traverse City property division lawyer can help you keep as much of your individual and shared assets as viable, uncover any assets hidden by your spouse, and make the process as smooth as possible. To learn more about how the skilled and compassionate lawyers at Alward Fisher can help you, contact us today.