Michigan Divorce - Determining Marital Assets
When a marriage dissolves in the state of Michigan, the parties must divide their marital assets through a process called “equitable distribution.” Only marital property can be distributed by a court. Separate property cannot be touched. That’s why one of the most common divorce disputes concerns the classification of property as marital or separate.
An experienced family law attorney can help you navigate this difficult issue. To learn more about equitable distribution, contact The Stroble Law Firm, P.C. today by calling (888) 454-0801 or by using our online contact form. Our divorce lawyers can help you determine what marital assets will be distributed in your divorce.
Marital Assets vs. Separate Assets
Under Michigan law, there is a presumption that any property acquired during the marriage is marital property, or marital assets. This includes any assets that are acquired up to the date of the final divorce decree as well as the “active” appreciation in the net worth of separate property during the course of a marriage. However, if separate property’s value increases during the marriage due to “passive” appreciation, such as inflation, market forces or mere accumulation of interest, then that increase remains separate property.
Other forms of property that are deemed to be divisible marital assets are:
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Earnings;
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Stocks and stock options;
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Profit sharing plans, IRAs, mutual funds and 401(k) plans;
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Social Security disability awards;
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Workers’ compensation awards;
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Accumulated vacation and sick time; and
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Damages for lost wages and past and future medical expenses in a civil judgment.
Retirement accounts, whether vested or unvested, also are considered marital property. They may be divided at divorce through a Qualified Domestic Relations Order, or QDRO, in which a pension plan administrator is ordered to distribute a portion of the plan to the other spouse.
Generally, any property acquired by either party before the marriage is separate property. This includes property that each party acquires while living together before the formal marriage.
Separate property may also include certain assets acquired during the marriage, such as:
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Property acquired by gift, legacy or descent;
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Property acquired as compensation for pain and suffering in a civil judgment; and
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Property acquired in exchange for separate property.
A diploma or professional license earned during a marriage remains separate property. However, when dividing the property, the court may consider that a spouse contributed to a “family effort” to help the other spouse earn the degree or license.
One of the thorniest issues in the equitable distribution process is what to do when separate assets commingle with marital assets -- for instance, when separate assets are invested in the marital home or property acquired by gift is placed into a joint bank account. As a general rule, separate assets lose their character as separate property and transform into marital property if they are commingled with marital assets and treated by the parties as marital property.
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More information: Equitable Distribution, Property Division
Contact Us
Determining if an asset is marital or separate can be a contentious issue in a divorce. At The Stroble Law Firm P.C., our family lawyers believe in taking an active, personal role in each and every case, and we have the experience to help you determine what assets will be distributed in your divorce. Based in Bloomfield Hills, The Stroble Law Firm represents clients across Michigan, including Macomb County, Oakland County, Warren, Clinton Township, Sterling Heights, St. Clair Shores, Mount Clemens, Utica, Roseville, Troy, Farmington Hills, Waterford, Southfield, Pontiac, Birmingham Michigan, Rochester Hills, West Bloomfield and Bloomfield Hills. Call The Stroble Law Firm at (888) 454-0801, or contact us online. We want to be a part of the solution, not the problem.
