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Can courts distribute the value of separate property in a divorce?

On Behalf of | Jun 11, 2024 | High-Asset Divorce

If you come into marriage with many assets, like cars, furniture or expensive jewelry, you may keep them if you get divorced. These items are separate or premarital properties and are not included in the marital property inventory.

That said, there are times when a court may distribute the value of a separate property to both spouses. Here’s what you need to know.

Division of separate property in Michigan

In Michigan, there are instances where a separate property may go to both parties instead of the spouse who originally owned it.

The first instance is if the other spouse contributed significantly to secure or improve the property.

For example, you and your husband moved into a house you bought before the marriage. However, they paid for home improvements, which increased the home’s overall value. If you get a divorce, they may receive a part of the total value of the property.

Another instance that may lead to the division of separate property is if the other spouse’s share of the marital asset is not enough to meet their needs. Moreover, if you and your former spouse regularly used a property for marital purposes, that item can become a marital property.

For example, you sent inherited money to a joint bank account you set up with your spouse. The funds can become marital property during asset division proceedings.

Asset division can be complex

Dividing marital property during divorce can be confusing, especially if valuable assets are involved. Deciding how to allocate the value of businesses, art collections and even pension plans will be challenging.

This process can become even more stressful and complex in a contentious divorce. To understand all your legal options, consider working with an asset division lawyer.