Michigan Isn’t a 50/50 State: Understanding Property Division
When you're facing a divorce, one of the biggest worries is, "What happens to everything we own?" People often assume everything is split 50/50. In Michigan, that's not exactly true.
We're an "equitable distribution" state, which means the court divides property fairly, not necessarily equally. So, what does "equitable" actually mean? It means a judge will look at your entire situation and decide what a fair split looks like. A 50/50 split might be fair in a 20-year marriage where both partners worked. But it might not be fair in a 5-year marriage where one person brought in significant debt.
Marital Property vs. Separate Property
The first step is figuring out what's on the table. The court only divides marital property. This is generally anything you or your spouse earned or acquired during the marriage. This includes major assets like the family home, cars, and any retirement accounts or pensions acquired during the marriage. It also covers bank accounts, investments, business interests, and even household furniture, it doesn't matter whose name is on the title.
Separate property is different. This is stuff that belongs to one person alone and usually isn't divided. This includes property you owned before you got married, or specific inheritances and gifts given just to you (as long as you kept them separate).
But be careful. If you "commingle" separate property, like depositing inheritance money into a joint account, it might become marital property. This is one of the biggest and most costly mistakes people make.
How Does a Judge Decide What’s "Fair"?
This is where it gets complicated. A judge won't just use a calculator. In Michigan, they consider a list of factors to reach a fair decision. These factors look at the whole picture of your marriage.
For instance, they'll look at the length of the marriage, the age and health of each person, and their ability to earn an income. They also weigh each person's contributions to the marriage (including as a homemaker) and their future needs. And yes, while Michigan is a no-fault state for *getting* a divorce, a judge can consider fault when *dividing property*.
What About the House and the 401(k)?
The house is often the biggest asset. You have a few options: one person can "buy out" the other's share, you can sell the house and split the profit, or in some cases, one parent might stay in the house with the children for a period.
Retirement accounts are often the second biggest. Even if the 401(k) is only in your spouse's name, the portion earned during the marriage is marital property. Dividing this requires a special court order (a QDRO), and it's critical to get it right so you don't face taxes or penalties.
Don’t Try to Navigate This Alone
Property division is one of the most complex and high-stakes parts of a divorce. Trying to handle it without experienced legal advice is a huge risk. Your spouse will have their own lawyer fighting for their interests, and you deserve the same.
At Shiraz Law Firm, we understand Michigan's divorce laws. We’re here to listen, guide you, and fight for the fair outcome you deserve. You’ve built a life; let us help you protect your future.
