When a couple decides to divorce, they need to address how to divide their property and their debt. There is general information available about Michigan property division that may be helpful for couples to know.
Spouses may own property together like a house, car and furniture. This is called marital property. They may also have joint debt like a mortgage, car loan, credit card debt or other loans. This is called martial debt.
The divorcing couple may want to sit down together and list all of their property and debts, as well as how they plan to divide them. A judge will need to review the agreement to ensure it is fair to each party.
When separating spouses can’t agree
If the spouses cannot agree on how to divide the property, the judge will divide the property for them. The judge may review the length of the marriage, each party’s financial needs, earning capacity and other factors. Usually, each party will receive about half of the marital property and debt but it is dependent on their individual circumstances.
Divorcing spouses who have separate property usually keep it individually in a divorce. Separate property may include items one spouse owns before the marriage or an inheritance he or she receives during the marriage. However, if separate property is put in a joint bank account or otherwise used for marital purposes, it may become marital property.
An experienced attorney can help divorcing spouses with property division questions to ensure their assets are protected, as well as provide representation for other divorce matters.