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Divorce ranks as one of the most stressful experiences that many people deal with at some point in their life. Understanding how your divorce can affect your family and finances can help reduce the emotional burden. One of the biggest concerns that men and women have when a divorce is imminent is whether or not they will be able to maintain possession of their assets.
Martial vs Separate Property
The first thing that the courts will determine is whether the property is ‘marital’ or ‘separate.’
The property that is considered jointly owned by the married couple is ‘marital’ property, and may be divided between the spouses. This includes any assets that were acquired during the marriage, such as homes, cars, furniture, or other home furnishings. This could also include financial agreements, such as retirement accounts, pension plans, and savings accounts.
It’s important to remember that, regardless of who earned the asset, it is still considered marital property.
Any assets earned prior to the marriage becoming official is considered ‘separate’ property and cannot be the subject of property division. The only exception being that gifts or inheritance received during the marriage can still be considered ‘separate.’
So, how is it divided?
Ideally, you and your spouse should attempt to divide your property in a way that is agreeable to both parties and document your decision with a contract, called a “property settlement agreement.” An experienced divorce attorney can help lead a peaceful mediation and negotiation meeting to facilitate this process.
If you are unable to come agreement on the division of your marital property, you’ll be forced to appear in court where a judge will make the decision based on evidence provided by your attorneys. Michigan courts are not required to follow a specific formula for property division, but instead must attempt the ‘fair and equitable’ division of marital property through the careful consideration of your case.
For more information about the divorce process, contact the attorneys at Bailey, Smith, & Bailey, Michigan’s leading family law attorneys, for a free consultation.