Creating Fair And Effective Property Division Agreements
Divorce is an emotional time. All too often, property division discussions are where the emotions come to the forefront. You need an advocate who understands your needs and priorities, and who can separate out the emotional energy. At the Livonia Law Offices of Jeanne M. Frazee, I help keep you on the path to a fair and enforceable property division agreement.
My name is Jeanne Frazee. For more than 30 years, I have dedicated my legal practice to family law representation. As your lawyer, I create a clear strategy for negotiations. I make sure you know all your options so that you can make the right choice for you. Call my office at 734-234-1868 to schedule your first consultation.
Understanding Asset Division
Michigan courts try to ensure that, during a divorce, the court treats both parties fairly. When dividing assets, this means that they are looking for a fair agreement, not necessarily a perfectly equal division. This is often referred to as “equitable division of assets.” Even in a fair arrangement, the outcomes can be complex.
All marital property is subject to division. This can include many common types of property, like a house and vehicles. It also includes property or funds gained over the course of your marriage. If you and your spouse own a business, have accrued retirement accounts or have accrued debt during the marriage, the resulting financial benefits or burdens can be divided.
How Is Marital Property Divided During A Divorce?
Michigan uses the rule of equitable distribution. This means dividing assets fairly, but not necessarily a 50-50 split. The court considers what is fair for your specific situation.
What Is Considered Separate Versus Marital Property?
Marital property is what you and your spouse acquired together. This includes property and debts from the date of marriage until divorce. Separate property is what you owned before the marriage. Gifts or inheritances received by only one spouse are also separate.
Can A Prenuptial Agreement Affect Property Division?
Yes, a prenuptial agreement can affect property division. This agreement sets rules for asset division before you marry. If it is a valid contract, the court will usually honor it.
How Is Your House Appraised During A Divorce?
I usually hire a neutral, professional appraiser. This person assesses the fair market value of the home. The appraisal provides a clear, objective number used in the division of your assets.
How Does The Court Determine The Value Of Your Home?
The court relies on the professional appraisal, which determines the current fair market value. This value is typically the equity in the home. Equity is the market value minus the remaining mortgage debt.
What Happens To Retirement Accounts During The Division Of Assets?
Retirement accounts receive the same treatment as any other marital asset. The division of retirement accounts usually depends on the marital portion or the value accrued from the date of marriage to the date of divorce. Dividing retirement accounts often requires a special court order called a qualified domestic relations order (QDRO). A QDRO avoids early withdrawal penalties and taxes.
Is It True That If An Account Or Property Is Only In Your Name, It Isn’t Considered Marital Property?
No, that is a common misunderstanding. Ownership title alone does not determine marital property. If you earned the money or bought the property during the marriage, the state might consider it marital property. Even if only your name is on the deed or account, the court may still divide it. My job as your attorney is to protect your true separate property or advocate for the equitable division of all marital assets, even if they are in your spouse’s name.
Put Yourself On The Path To A Better Future
Moving on is not easy. Fair treatment during your divorce can ease the process. As your legal advocate, I will protect your interests throughout asset division and more. Speak with me today at 734-234-1868.