Before a judge will sign the final decree in your divorce case, a number of issues must be determined. One of the biggest — and often most contentious — matters that must be decided concerns the equitable distribution of marital property. Importantly, any assets, property, and debts that were acquired by you or your spouse during the marriage must be addressed during the divorce process and divided between you.
Equitable distribution of marital property refers to the legal doctrine that dictates how assets must be divided in a divorce under Michigan law. It means that a court must divide marital property between the spouses in a way that is deemed fair. However, unlike in community property states, where property is divided 50-50, equitable does not necessarily mean equal.
A judge can consider a wide variety of factors to decide what would be a fair and reasonable distribution, including the following:
Each factor will not apply in every case. The judge will evaluate the facts and circumstances of the marriage to decide which factors are relevant — and how to reach a fair result concerning the equitable distribution of marital property.
Only marital property is subject to division in a Michigan divorce. Marital property is defined as any property or asset that was acquired during the course of the marriage, regardless of which spouse purchased it — or whose name the title is in. This category of property is distinct from separate property, which was owned by either spouse before they got married. Separate property belongs to the original owner upon divorce and does not need to be divided.
Common examples of assets that are subject to division in divorce can include the following:
Property that is excluded from division under the equitable distribution of marital property doctrine can include any inheritances or gifts received by either spouse during the marriage — upon divorce, these will belong to the spouse who inherited unless such funds were commingled with marital property. In addition, any assets that are specifically characterized as separate property in a valid prenuptial or postnuptial agreement may also be excluded from division in a divorce action.
There are two ways the equitable distribution of marital property can be decided in a divorce case — by the spouses or by the judge. It’s often best for spouses to decide property division matters between themselves. Not only can this help them maintain control over the outcome of their case, but the spouses are more likely to be satisfied with the result.
Alternative dispute resolution methods such as mediation or the collaborative process can often be used to assist spouses in reaching a settlement agreement regarding asset division and the various other matters that must be decided in their case. After the spouses reach a settlement, it will be submitted to the court to be signed by the judge and become a binding order.
Significantly, spouses can decide how to divide their assets in any manner they wish when they work to reach a resolution out of court. While the doctrine of equitable distribution of marital property can apply as a general rule when negotiating a settlement, spouses may wish to deviate from it and divide their property in a way that makes sense to them. When working toward a property division settlement, spouses can focus on finding creative solutions that are best for them and their family.
In the event spouses are unable to reach an agreement on how to divide their property in divorce, judicial intervention in the courtroom may be necessary. When property distribution is decided by the court, the judge would apply the equitable distribution factors outlined above to reach what they deem to be a fair result.
If you would like to learn more about the equitable distribution of marital property and how your rights are impacted by this doctrine in divorce, it’s best to consult with a knowledgeable divorce and family law attorney who can best advise you. Located in Sterling Heights, The Law Offices of Kevin R. Lynch P.L.C. provides a wide array of matrimonial and family law services to Michigan residents, including those involving property division.
You can set up a free consultation by calling 586-336-1088 or contacting us online. We assist clients throughout Macomb, Oakland, and Wayne counties.
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