What Assets Can Be Divided in a Divorce – Michigan Lawyers

Everyone is accustomed to the idea that assets will be divided in a divorce. On defining what an asset is, very little time is spent. What would happen if you bought something and gave the title to your in-laws? A few objects have titles attached to them. You have a home, a vehicle, or some form of securities. What does it mean if you and your partner buy a home under your in-laws’ name on the title??When it is in the name of someone not a party to the divorce, can this asset now be divided as marital property? What assets can be divided in your divorce case?

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Courts handling divorces are equity courts. The law will be followed by the courts. If the property was presented as a gift for tax purposes, the court will inquire. Where did all the money for the house purchase come from? Who covers the mortgage payments? Who covers the interest and upkeep on a mortgage? If the asset is a part of the marital estate, the court will decide.

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What are separate property and marital property?

Marital property includes anything that was obtained throughout the marriage. Instances of what Michigan law deems to be marital property are given below:

[a] The home the newlyweds bought after their marriage.?

[b] The earnings the woman made while employed as a hotel cashier when the couple was married.?

[ c ]?The husband’s retirement.

Before the marriage, acquired assets are referred to as separate assets. They are separate properties. Gifts and inherited property received during the marriage belong to the spouse separately. While the couple is married, one spouse’s inheritance is regarded as separate property. In a personal injury lawsuit, you might have obtained pain and suffering damages. The damages award is frequently considered separate property.

On rare occasions, a separate asset may combine with or turn into marital property. There are sufficient legal precedents to justify how this might occur. Here is one possible scenario. You used the separate property to the family’s benefit. The asset was joined with marital assets. A spouse may be eligible for a part of the separate property owned by the other. If the spouse helped with the property’s purchasing, then this can happen. It may also occur if the spouse contributed to its development or accumulation.

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How are property divisions decided by the court?

The “equitable distribution” principle in Michigan is the framework for sharing marital assets.?It is a determination of what is appropriate in each situation. Michigan judges have the discretion to deviate from a 50/50 split. The courts often allocate assets in a fair and equal manner.

When dividing a couple’s assets, the courts consider many factors, including:

[ 1 ]?The asset’s provenance;

[ 2 ]?How long the marriage has been;

[ 3 ]?The requirements of the parties and the kids;

[ 4 ]?The financial resources and capacity of the parties;

[ 5 ]?Help in obtaining it;

[ 6 ]?Factors that drove the divorce

[ 7 ]?Common equity principles; and

[ 8 ]?Any other elements the court deems significant.

High-value divorces or divorces involving high-net-worth spouses might present some complicated divorce situations. The value of the asset must be established before we can split them. Various assets require different amounts of work to be valued. Valuation for some types of property can be more challenging than for others. Parties may need to engage the services of property appraisers. Or to take extra measures to arrive at a fair appraisal. It is not always simple to distinguish between separate and marital property. The challenge becomes acute when individual and married assets are commingled.

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What properties are subject to property division?

You must be familiar with Michigan’s property division laws. Michigan belongs to a group of states referred to as “equitable distribution states.” Find out what is involved in the division of marital assets and obligations. The court divides up the marital property. Debts and assets from the marriage are also shared. The phrase “marital property” can be used to describe both assets and debts. The majority of assets acquired after the start of the marriage are marital property. Assets acquired before the nuptials are considered separate property. Discuss any exemptions to this classification with your attorney as there are some.

Debts accumulated during an extramarital affair. Debts incurred because of gambling and legal restitution are not considered marital debts. Student loans taken out for educational purposes by one spouse are separate property. Student loans utilized to maintain the family can be considered marital debt. The person who acquires a piece of property typically takes on the debt attached to it. The person who can meet the related obligation may continue to be the owner of the property.

The marital estate does not include some assets. An enforceable prenuptial agreement excludes it. In the event of divorce, these assets won’t be split. A spouse can get property as a consequence of an inheritance or gift. A gift that was not obtained via the use of marital assets or by the other spouse. There won’t be any division of these things during the divorce process.

Liquid assets are available to both parties. The division of these assets will be simple. It can be difficult to divide up the assets. This occurs when there is a mixture of liquid and non-liquid assets. For instance, a 401(k)’s face value may not be accurate when you liquidate it. A 401K’s value can be lowered because taxes must be paid when it is liquidated. Fees for early withdrawal are possible.?

The worth of the property must be known to the court. The court mandates exact assessments. This ensures assets can be distributed equitably and fairly. That is fairly simple to do with some things, like a bank account. When it comes to real property, get guidance from an expert, such as a business or real estate appraiser.

Retirement account evaluation could be particularly difficult. This is especially true if they are divided before their payout time. The account’s current worth must be established by the court. An actuary’s help is needed for this. Look for experts, but be ready to pay extra for their insight and advice.

The judge cannot direct how your debts should be handled by your creditors. Your creditors are not subject to the judge’s jurisdiction. Your creditors are owed money. Through the divorce decision, the judge will name each debt to either you or your husband. Your obligations will still be seen as a joint obligation by your creditors.

Draw a list of any debts that are owed in both of your names. The judge can make the payment requirement mandatory. This is in case the person who is supposed to pay the debt doesn’t. Submit a motion asking the judge to compel your spouse to compensate you. If you find yourself paying a debt that was transferred to your spouse, you will have to take this action. Resources and obligations are not all created equal. Some may be pre-tax, while others may be post-tax. While some may fluctuate often, others may have very static levels. It doesn’t follow that something is fair just because it appears fair on the surface.

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