Is Michigan a 50/50 Divorce State?
You may have heard that some states are known as a 50/50 divorce state. That means everything is automatically split down the middle. But that is not how divorce works in Michigan.
So, is Michigan a 50/50 divorce state?
Michigan follows a process called equitable distribution. That means property is divided based on what the court determines is fair under the circumstances.
Sometimes that results in a 50/50 split. Sometimes it does not. Here is what you want to know.
What Does Equitable Distribution Mean?
The term equitable can be confusing. Many people think that it means equal. However, equitable distribution does not always mean each spouse receives the exact same amount.
The Michigan court system will look at the bigger picture of the marriage. Every relationship is different. With that, the court considers the circumstances surrounding each divorce before deciding how property should be divided.
For example, a couple married for a few years with limited assets may have very different concerns than a couple who has been married for decades and built a home, retirement accounts, and other investments together.
There is no automatic formula that applies to every divorce.
What Property Is Divided?
Before property can be divided, the court needs to decide what property is considered marital and what may be separate. In most cases, marital property includes assets and debts acquired during the marriage, such as:
- The family home
- Bank accounts
- Retirement accounts earned during the marriage
- Vehicles
- Investments
- Business interests
- Personal property
Separate property may include assets one spouse owned before the marriage or certain gifts and inheritances.
For example, if separate property was combined with marital funds or used for the benefit of the marriage, it may become part of the discussion during divorce.
What Factors Does the Court Consider?
Since Michigan does not follow a strict 50/50 rule. That means courts consider several factors when deciding what division is fair. Some of these factors may include:
- The length of the marriage
- Each spouse’s contributions to the marriage
- Each spouse’s financial situation
- Each spouse’s ability to earn income
- The age and health of each spouse
- The needs of each spouse
- How the property was acquired
- Any other circumstances that may affect fairness
Some of these contributions to a marriage are not only financial. For example, a spouse who stayed home to raise children or manage the household may have made contributions even without earning a traditional income.
Can You and Your Spouse Decide How to Divide Property?
Yes. In many divorces, spouses are able to reach an agreement about property division without asking a judge to decide every issue. With negotiation or mediation, couples may create their own plan for handling assets and debts. This may include decisions about:
- Who keeps the family home
- How retirement accounts are divided
- Who takes responsibility for certain debts
- How personal belongings are divided
Reaching an agreement can provide more control over the outcome. Sometimes, that may help reduce some of the stress that comes with a contested divorce.
Does Michigan Law Favor One Spouse Over the Other?
No. Equitable distribution is not to punish one spouse or automatically reward the other. With this process, the courts want to reach a decision that considers both spouses and the details of their marriage. That is why two Michigan divorces involving similar assets can still have very different outcomes.
Protect Your Interests During Property Division in a Divorce
Is Michigan a 50/50 divorce state? When it comes time to make decisions about your financial future, this can be an emotional part of ending a marriage.
At the Law Office of Melissa M. Pearce, PLC, we take the time to understand your situation. If you have questions about how your property may be divided, reach out to schedule a consultation.