Divorces can be tumultuous and emotionally draining, especially when you have to make complex decisions regarding children and property. Asset division will be unique for each couple and depends on each party’s individual circumstances. Property may or may not be equally distributed during a divorce, depending on varying aspects. For more information continue reading and speak with an Oakland County property distribution lawyer.
What Assets Are Subject to Division?
While most of a couple’s life becomes intertwined during marriage, not all assets are subject to property division during a divorce. Only property that is considered marital will be split between spouses. Individual or separate property will remain in one spouse’s possession.
Any property acquired during the course of marriage could be considered marital property, regardless of who bought it or whose name is on the title or deed. This can include a family home, bank accounts, retirement accounts, cars, artwork, etc. There may be exceptions for inheritance or gifts, but it can generally be argued that assets obtained during marriage or with marital funds are jointly owned.
Separate property can refer to most assets that one spouse had before the marriage. For example, if one spouse owned a vacation home before they met their spouse it could be considered separate. However, if they renovated the home using marital funds or if the other spouse helped clean or take care of the home it may have become marital property over time. Which assets are subject to division will depend on the couple’s unique circumstances.
Are Assets Equally Distributed in an MI Divorce?
Michigan is an equitable distribution state. This means that when a couple gets divorced the joint assets they share are to be divided in a way that is fair for both parties, as opposed to simply being split in half. A 50/50 split can occur, but it is not the default for equitable distribution states. A court will determine what is fair based on many variables.
How is Property Division Calculated?
A court will determine the percentage of the total that each spouse is entitled to. That may be 60% to one spouse and 40% to the other, or even more of a stark difference. However, it is possible that the couple will be awarded a 50/50 split. If both spouses have similar incomes, debts, and other responsibilities that lead to a fairly comparable financial situation, an equal split may be deemed appropriate.
A court will take into consideration the following before determining the percentage of assets a spouse will be awarded.
- The debts and liabilities of each spouse/as a couple
- Both spouse’s financial situation as in income, earning potential, etc.
- The age of each spouse
- The mental and physical health of each spouse
- Whether one spouse contributed to the other’s education
- Whether one spouse left work to raise children or take care of the home
- Whether one spouse wasted marital assets
After considering the above and the needs of each spouse a court can determine which party should receive which percentage of the couple’s total assets. There may also be conditional factors, like if it makes more sense for one spouse to maintain ownership of certain assets.