Assets and How to Divide Them During Your Michigan Divorce

 Posted on November 15,2018 in Divorce

When most couples are married, their finances and their assets become intertwined, which typically can make things easier - unless you get divorced. When you get divorced, everything must be separated again, which can make for a confusing process. You and your spouse might own things together, like a home, other real estate, cars, furniture, and other household items. The things that you and your spouse jointly own is called marital property. Usually, if you own things like real estate or a car, you typically have debt, too. Any debt that you have together, like a mortgage, credit card debt or auto loans must also be considered when you divorce. Like marital property, marital debt must be divided. In Michigan, marital property is divided equitably, which does not always mean equally. Here are some suggestions on how to divide certain assets during your Michigan divorce:

The Family Home

The easiest way to deal with your home when you are getting a divorce is to sell it and then split the proceeds. This only works, however, if you have equity in your home. If you do not have equity in your home, you might have to sell your home at a loss and then determine who will be responsible for paying the rest of the mortgage. If one of you wants to keep the home, then you can pay the other spouse what their half of the home is worth. Either way, the first thing you should do is determine what your house is currently worth and go from there.

Your Furniture and/or Household Items

Dividing your furniture and other things that you have in your house can be easy or it can be difficult; it is up to you and your spouse. First, you should make a list of everything that you own that is up for grabs. Make note of the items that you want to keep and the items that you could do without. These can be used as bargaining chips when it comes time to negotiate.

Your Retirement Accounts

This is where things can become a little tricky; how your accounts are split up depends on what type of accounts they are. Your 401(k) accounts will require a qualified domestic relations order (QRDO) to split them up. This document just outlines the way the funds will be divided. Your IRA is a little easier to split up because you do not need a QRDO. You can simply transfer funds over into your spouse’s IRA account.

A Farmington Hills, MI Property Division Lawyer Can Help

It is no secret that divorce is difficult, but it does not have to be confusing. Our Oakland County property division attorneys can help you make sure that you are getting your fair share of marital property and that your marital debts are divided accordingly. At Elkouri Heath, PLC, we know how stressful it is to go through a divorce, but we are committed to helping you make the process as easy as possible. To schedule a consultation, call our office today at 248-344-9700.

Sources:

http://www.legislature.mi.gov/(S(t0vi3su3ms3pdc0z23ri1eg2))/printDocument.aspx?objectName=mcl-552-401&version=txt

https://www.fool.com/retirement/2017/12/07/how-to-split-these-7-assets-during-a-divorce.aspx

https://www.fidelity.com/life-events/navigating-finances-during-divorce/what-you-need-to-know-about-splitting-assets