Michigan Law on Divorce Settlements
A divorce settlement is an order or agreement that sets forth how property is to be distributed between the spouses during a divorce. In Michigan, spouses can attempt to reach a settlement agreement. However, if they are unable to do so, a court will issue the settlement.
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Mediation
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If spouses are willing to decide their own divorce settlement, a trained mediator may be able to help the spouses reach an agreement. It is important that both spouses fully disclose their assets to ensure fairness. If a court learns that a settlement was signed based on fraud, because one spouse attempted to hide assets, the settlement may be voided. In that case, the court will issue a new property division order.
Defining Property
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When a Michigan court distributes property, it must first classify property as either separate or marital. Separate property includes anything acquired by one spouse before the marriage, any family inheritance received during the marriage, so long as it has not been commingled with marital property and any property purchased during the marriage using separate funds. Marital property is any other asset acquired during the marriage or any separate property that has been commingled with marital property. This includes an inheritance check that was deposited into a joint bank account.
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Dividing Property
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According to Section 552.401 of the Michigan Compiled Laws, a court will divide property according to "equitable distribution" guidelines, which means fair, but not always equal. However, Michigan courts do usually divide property in half unless doing so is unfair. In that case, a court may consider: (1) the spouses' ages, (2) the duration of the marriage, (3) the spouses' income, (4) each spouse's contribution in acquiring the property and (5) either spouse's fault in causing the divorce.
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