Ann Arbor Property Division Lawyer

In Michigan, the Court will divide marital property in a just and fair manner.   Courts will begin by assigning property as either marital property or separate property. Generally, any property acquired by either party prior to the marriage is separate property, as well as any assets acquired by gift or inheritance. However, under certain circumstances, separate property may be considered marital property.  In other circumstances, a spouse may be entitled to invade their spouse’s separate property as part of the marital property settlement.

While judges often order a 50/50 split of all marital assets and debt, courts are technically free to order a different division as equity, or fairness, requires. In some situations, a court may deviate from a 50/50 division. When making a decision on property distribution, a judge will consider several factors, including:

• the length of the marriage;
• the spouses' contributions to the marital estate;
• the spouses' ages and health;
• the life status of the spouses;
• the spouses' necessities, financial needs, and circumstances;
• the earning abilities of the spouses (how much income each spouse could earn based on education, job skills, work history, and employment opportunities);
• the spouses' past relations and conduct; and
• general principles of equity (fairness).

For spouses with children together, one of the more contentious pieces of property to be divided is the marital home. The easiest way to resolve the division of the marital home is for the couple to agree to sell the property and divide the proceeds.

However, it is often the case that the custodial parent will want to stay in the marital home for the children’s wellbeing (e.g., it is close to their school). If there are enough joint assets available, the spouse who wants to remain in the house can buy out the other spouse's interest. Alternatively, amicable spouses might agree to keep the house in both names while only one party resides there until a certain date, such as when the youngest child completes high school. 

If the couple cannot agree on what to do with the home, and how to divide their assets in general, the judge will decide based on the above criteria.

Can Separate Property Be Distributed to the Nonowner Spouse?

As discussed earlier, separate property is property one spouse owns and that typically cannot be divided.  However, under Michigan law, separate property can be divided under two circumstances: 

1.  the marital estate is insufficient for the “suitable support” of the nonowner spouse and children; or

2.  the nonowner spouse contributed (directly or indirectly) to the acquisition, improvement, or accumulation of the property. 

Can Separate Property Become Marital Property?

If a spouse commingles their separate property with marital property, the separate property then becomes marital property up for division. For example, if a spouse deposits their inheritance into a joint marital bank account, the court will likely could deem all the funds in that account marital property.

Appreciation or income traceable to a spouse’s separate property may also be deemed marital if a parties’ efforts during the marriage increased the asset’s income or value (“active appreciation”).