Dividing Property and Debt During a Michigan Divorce

 Posted on May 03,2023 in Divorce

Divorce is a difficult process that can be emotionally and financially draining. One of the most challenging aspects of divorce is property and debt division. Dividing property and debt during a divorce can be complicated, especially when spouses have significant assets or debts.

It is important to have a thorough understanding of Michigan divorce laws and work with an experienced divorce attorney to ensure a fair distribution of property and debt. This blog will discuss some important considerations and steps for dividing property and debt during a Michigan divorce.

What Is Considered Marital Property and Debt?

Marital property and debt are assets and liabilities acquired during the marriage, regardless of which spouse earned the income or whose name is on the title or account. Examples of marital property and debt may include marital homes, vehicles, bank accounts, credit card debts, and mortgages.

How Is Property Divided?

Michigan follows the principle of equitable distribution, which means that property should be divided fairly, taking into account various factors such as the length of the marriage, the contributions of each spouse to the marriage, and each spouse's earning capacity and needs. Michigan courts consider many factors when dividing property, including:

• The length of the marriage

• Each spouse's contribution to the acquisition of marital property

• Each spouse's income and earning capacity

• Each spouse's needs and circumstances

• The source of the property

• The health and age of each spouse

• Any prenuptial or postnuptial agreements

How Is Debt Divided?

Debt is divided using the same equitable distribution principle as property. The court will consider each spouse's contribution to the debt and ability to pay, as well as other factors such as the nature and amount of the debt and the purpose for which it was incurred.

Can You Divide Property and Debt Without Going to Court?

Yes, you can. Spouses are encouraged to reach a settlement agreement outside of court through negotiation or mediation. A settlement agreement can provide more flexibility and control over how property and debt are divided rather than leaving it up to a judge to decide.

How Can An Attorney Help With Property and Debt Division?

During a divorce, it can be difficult to determine who gets what, and both parties may have different ideas about what is fair. Therefore, having a knowledgeable attorney on your side who can help you navigate this process is crucial.

One of the primary roles of an attorney in the property and debt division is to ensure that their client receives a fair and equitable distribution. An attorney can help you negotiate and advocate for the property and debt division most beneficial to you.

Additionally, an attorney can help you identify all the assets and debts subject to division. This may include real estate, bank accounts, retirement accounts, investments, vehicles, and personal property. They can also assist with determining the value of these assets and debts, as well as any tax implications that may arise from their division.

Furthermore, an attorney can help you navigate the complex legal process of property and debt division. This may include drafting and negotiating a settlement agreement, appearing in court on your behalf, and ensuring that all necessary paperwork is properly filed and processed.

Contact a Farmington Hills Divorce Lawyer Today

A divorce lawyer can be an invaluable resource during property and debt division in a divorce. If you are going through a divorce in Michigan and need help with dividing property and debt, contact Elkouri Heath, PLC today. Our professional Novi family law attorneys can provide the legal advice and representation you need to achieve a fair and equitable property and debt division. Dial 248-344-9700 to book a free consultation.

Source: 

http://www.legislature.mi.gov/documents/mcl/pdf/mcl-chap557.pdf