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When you’re going through a divorce, the financial side can feel just as overwhelming as the emotional one. You’ve built a life, mixed your finances, bought things together, and made decisions as a team. Now, the question becomes: How do you untangle it all in a way that feels fair?
In Michigan, dividing property and debt doesn’t always mean splitting everything 50/50. Instead, courts focus on what’s equitable (and spoiler alert: that doesn't necessarily mean equal in the hard and fast sense).
Understanding how asset and debt distribution works can make the divorce process feel more manageable and make you feel more in control. Here’s what to know.
Under MCL §552.19, the court aims for an “equitable” (fair) distribution of marital assets, not necessarily a 50/50 split, but what exactly counts as marital assets?
Marital property generally includes anything acquired during the marriage, such as:
Separate property (this is what’s yours to keep) usually includes:
That said, separate property can sometimes become marital if it gets mixed with marital funds (for example, if you add your spouse to a deed or combine finances).
When deciding what’s equitable during divorce, courts may look at factors like the length of the marriage, each spouse’s income and earning potential, contributions to the marriage (both financial and non-financial), the needs of each spouse, health and age, who will have primary responsibility for minor children, and whether either spouse wasted or hid assets.
These factors help ensure that the final outcome is balanced and sustainable for both parties.
The home is often the most emotional and financially significant asset. Since you can’t split a house down the middle, how do you go about equitably dividing such a property. Though none may feel ideal, common options include:
The best option depends on your finances, long-term goals, and ability to maintain the home after the divorce.
Debt division follows the same equitable approach as asset division. Marital debt usually includes anything incurred during the marriage, even if the account is in only one spouse’s name. This may include mortgages, car loans, credit card balances, medical bills, personal loans, and tax or other debt.
Courts look at the purpose of the debt, who benefited from it, and each spouse’s ability to repay. If one spouse racked up debt irresponsibly or without the other’s knowledge, the court may assign more of that debt to the person who incurred it.
Retirement assets are often one of the largest pieces of the marital estate, and Michigan divides the marital portion of these accounts equitably. A Qualified Domestic Relations Order (QDRO) is often used to divide certain accounts without triggering taxes or penalties. Accurate valuation is essential, especially with pensions.
Unfortunately, it happens more than people think. Some spouses try to transfer money to friends or relatives, underreport income, delay bonuses or commissions, hide cryptocurrency, undervalue a business, drain joint accounts, or attempt other nefarious activities.
Michigan courts take this seriously. If a spouse intentionally hides or wastes marital assets, the judge may award a larger share to the other spouse or require repayment.
During divorce, you’re not just dividing belongings, you’re setting the foundation for your next chapter. At McKinney Vos PLLC, we help you understand your rights, analyze your assets, and work toward a settlement that supports your future stability.
Whether your financial picture is simple or highly complex, our team is here to guide you through every step. Reach out today to schedule a free consultation with our team.
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