Marital Property Division in Michigan
Equitable distribution in Michigan
Property division in divorce in Michigan follows an equitable distribution standard. That means marital property and marital debt are divided fairly based on the circumstances, not automatically in equal halves. Separate property, such as inheritances to one spouse or premarital assets, usually stays with that spouse unless it was commingled or a fair outcome requires limited invasion. Paul S. Kowal, P.C. helps clients in Clinton Township, Sterling Heights, Macomb Township, Utica, Oxford, Oakland Township, Rochester Hills, Novi and other areas in the Southeast Michigan region understand how fairness is applied to their specific facts.
What counts as marital property in Michigan?
Marital property generally includes earnings during the marriage, homes and real estate purchased during the marriage, retirement accounts funded during the marriage, vehicles, bank and investment accounts, and household items. Separate property often includes assets owned before the wedding, gifts to one spouse, and inheritances, though growth or contributions during the marriage can create a marital component. We organize documents and timelines so your assets are accurately classified and nothing important is overlooked.
How Michigan courts value property and loans
A fair division starts with accurate values. Homes may need appraisals, businesses can require expert valuation, and investment and pension statements must reflect the correct dates and marital share. Credit cards, personal loans, and tax liabilities are part of the equation. Paul S. Kowal, P.C. works with appraisers, accountants, and plan administrators so the numbers used in negotiations and any court hearing are reliable.
Options to divide the house, retirement, and debts
Fair outcomes take many forms. One spouse may keep the house and refinance while the other receives more liquid assets. A 401 k or pension can be divided by court order, and credit cards can be allocated based on use and ability to pay. When there has been waste of marital funds or other misconduct, courts may award a greater share to the other spouse. We negotiate practical tradeoffs that protect your priorities without needless conflict.
Business owners, multiple properties, and hidden assets
Significant estates require careful discovery. We use subpoenas, tax return analysis, and account tracing to ensure full disclosure. For closely held companies, we coordinate valuations and consider structured buyouts so the business can continue while each spouse receives a fair share. Families near Lake St. Clair and across the Southeast Michigan area benefit from a divorce strategy that helps identify and properly values assets.
Negotiation first, litigation when necessary
Paul S. Kowal, P.C. favors calm, detailed negotiation to reach efficient agreements. If the other side is unreasonable, we present clear evidence and a workable proposal to the court. We also look at the full picture, including how property division and spousal support interact, so you do not trade short term wins for long term problems.
FAQs: Property Division
Do we have to split everything 50/50?
Not necessarily. Michigan aims for fairness, which often is close to equal, but judges can deviate based on factors like need, earning capacity, or waste of assets.
What about my 401(k) or pension?
The portion earned during the marriage is marital. Most plans require a special court order to transfer a share properly and without tax penalties.
Can I keep the house?
You may, if you can refinance and buy out equity or trade other assets. We analyze affordability and negotiate terms that fit your goals.
Who is responsible for our debts?
Marital debts are divided too. Courts consider purpose, who benefited, and ability to pay. Negotiation can swap assets for debts to reach a balanced outcome.
Plan Your Financial Future
The way assets and debts are divided will shape your next chapter. Paul S. Kowal, P.C. can help you understand your rights and secure a fair share of the marital estate. Call (586) 731-3012 to start a plan that fits your life in Macomb County.