Division of Assets

Dividing marital assets is one of the most contentious aspects of a Michigan divorce, next to determining child custody. When it comes to distributing marital assets in a divorce, Michigan follows the rule of equitable distribution. In other words, Michigan is not a community property state that simply divides marital assets 50/50.

In many divorce cases, the couple comes up with their own settlement agreement after negotiations or mediation. In the event an agreement can not be reached, the court will decide on the division of assets once the trial is conducted.

Understanding the differences between marital and separate property is extremely important when negotiating asset distribution. It is in the best interests of both sides to consult with their own experienced Michigan divorce attorney who can advise on what assets are subject to division. Settlement agreements cannot be modified unless there is a specific criterion present, like fraud or a clerical error.

Who We Help

People come to us at very different points in the process, but their worries tend to fall into a few common categories. We regularly help clients who are dealing with the following:

• Separate property that feels at risk. You owned property before marriage, received an inheritance or gift, kept an account in your own name, or mixed separate money with marital funds. Now your spouse claims an interest in it, or says other property does not belong to you, and you are afraid of losing more than you should.
• A spouse who controlled the money. Your spouse handled the accounts, taxes, investments, or business records, or money and documents have started disappearing. You are worried that assets may be hidden, transferred, or undervalued before everything gets divided.
• The family home. You are attached to the home or want to keep your children there, but you do not know whether you can afford it, qualify for a buyout, manage the mortgage on your own, or avoid a forced sale.
• Disagreements over value and fairness. You and your spouse do not see eye to eye on what property is worth, who should keep certain assets, or whether a proposed trade or buyout is truly fair. You may feel pressured to accept an agreement without fully understanding what you would give up over the long term.
• Debts you did not create. You are worried about being assigned credit cards, loans, taxes, business obligations, or other debts you cannot afford, all while trying to support yourself after the divorce.

If any of these sound familiar, you are not alone, and you have options. Our team at Robbins & Licavoli is ready to help you determine the next steps forward.

How Division of Assets Works in Michigan

Michigan follows the principle of equitable distribution. The court divides marital property in a way it considers fair, weighing factors such as the length of the marriage, each spouse’s contributions, earning ability, and conduct during the marriage. Here is how the process generally unfolds.

1. Identify what property exists. Both spouses disclose their assets and debts. This includes bank accounts, real estate, vehicles, retirement plans, investments, business interests, and personal property, along with any money owed.
2. Classify property as marital or separate. Marital property is generally what you acquired during the marriage. Separate property usually includes assets you owned beforehand, plus inheritances and gifts made to you alone. Problems arise when separate property gets mixed with marital funds, which can change how the court treats it.
3. Assign a value. Some assets are easy to value. Others, like a business, a pension, or a home, may call for appraisals or financial analysis to reach an accurate number.
4. Divide the marital estate. Once the marital property and debts are valued, the court or the parties work out a division. This might mean one spouse keeps the house while the other keeps a larger share of retirement savings, or one spouse buys out the other’s interest in an asset.
5. Finalize the terms. The agreement or court order spells out who receives what and who pays which debts. This becomes part of your final divorce judgment.

Most cases settle through negotiation, which gives you more say in the result than leaving the decision to a judge. When settlement is not possible, we are ready to argue your case in court.

Factors That Can Influence Asset Division

When the court is looking at the division of assets in a Michigan divorce, the judge will consider a number of factors, including:

• Contributions to the marital estate
• What was the cause of the divorce
• How long the marriage lasted
• Each spouse’s earning ability
• Needs of the children and both parties
• Health of each spouse
• Past conduct/relations of each party
• General principles of equitable distribution

There are other factors that deserve special mention, including whether or not a prenuptial agreement exists. In the event there is one, it could affect how assets are divided and what options there are for spousal support.

Depending on the value of the marital estate, the court may need to look to experts for valuation assistance. For example, a couple with extensive assets may need to hire a CPA or tax attorney to help analyze their assets and come up with a value.

Separate versus Marital Property

In many cases, whatever you had prior to entering into marriage will be considered separate property, unless it is commingled with marital assets. There is the risk that separate property will be treated as marital property if the other spouse contributed to it. If one spouse received an inheritance or gift during the marriage, that may still be considered separate property provided it was not shared or commingled. This is one of the reasons retaining a Michigan divorce attorney is so important. Your attorney will help you analyze the marital estate in order to make recommendations on the best course of action.

Why Choose Robbins & Licavoli

We take time to understand your situation before we recommend a strategy. You get direct answers, clear explanations of your options, and an attorney who truly cares about your case. Here’s why Michigan families choose our team:

• We dig into the financial details. We review account records, tax returns, and business documents to build a full picture of the marital estate. When something looks off, we press for answers and bring in financial professionals when a case calls for it.
• We protect what is separately yours. If you brought property into the marriage or received an inheritance, we work to keep it classified as separate and out of the divided pool.
• We plan around your priorities. Whether keeping the family home matters most to you or protecting your retirement does, we shape our strategy around what you value.
• We prepare every case as if it could go to trial. Strong preparation gives you leverage in negotiations and readiness if the case reaches a courtroom.
• We keep you informed. You will understand each step, what your options are, and what a given decision could cost or save you down the road.

Our process starts with a conversation about your goals and concerns. From there, we gather the financial information, develop a strategy, and pursue the fairest possible outcome through negotiation or litigation.

Retaining a Michigan Divorce Attorney

At Robbins & Licavoli, PLLC, we specialize in family law matters, including the division of assets in a divorce. It is imperative to understand the differences between separate and marital property when negotiating or drafting a property settlement agreement. If you have questions or need assistance, contact our office or complete the contact form at the bottom of this page to schedule a consultation.

FAQs About Division of Assets in Michigan