Property Settlement

Property Settlement Attorney in Clinton Township

What Is Marital Property?

In dividing marital property, a court must first distinguish between marital and separate assets. When an asset is the separate property of one spouse, that increase in its value that occurred during the marriage is still marital property if the increase is due to the active involvement of one of the spouses, rather than simply passive appreciation. Assets accumulated when the parties cohabitated before marriage are not considered marital property.

Marital assets are typically valued at the time of trial or the date of entry of the divorce judgment. Thus all increases are considered marital property until the marriage ends (either through death or entry of a divorce judgment). But property received after a divorce may be considered marital property if the property was obtained by efforts that took place during the marriage.

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Specific Types of Property and How They Are Treated In a Divorce

Worker's Compensation and Social Security Disability: They are considered part of the marital estate if received for injuries sustained during the marriage
Social Security Benefits: A spouse is entitled to a portion of the other spouse's social security benefits only if the benefit has a present, ascertainable value. Social security benefits are not a marital asset, but may be considered when determining child support and spousal support.
Stock Plans and Stock Options: Vested stock options are marital assets, as are pensions. Stock options not yet vested or matured are treated differently.
Professional Degrees or Licenses: When the degree is achieved through a concerted family effort, the contributing spouse has a claim for compensation for their sacrifices, efforts and contributions. But the claim is not for a share in the lifetime investment value of the degree.
Retirement Assets and Pensions: Retirement benefits are not part of the marital estate unless the parties so agree. Each distinct component of a pension plan must be specifically awarded in the divorce judgment. The right of survivorship in a pension plan will not be given to the divorced spouse unless it is specifically included as part of the pension award in the judgment of divorce. Generally, only benefits earned during the marriage will be awarded in a divorce, unless they contributed to the acquisition of the benefits or the award to the claimant spouse from the marital estate is insufficient to maintain them.
Damage Awards in Tort Lawsuits: A tort lawsuit (and any damages awarded therein) is a marital asset. A person injury award for pain and suffering is personal to the injured party, but may be taken into account in a property settlement in the same way as any other separate property.

What About the Tax Consequences of a Divorce?

Michigan law requires that courts take into consideration the tax consequences of stock options, and things such as the value of banked leave days. But the party requesting that taxes be taken into account must present evidence of what the taxes would be. The court may award either party the right to claim children of the marriage as a dependency exemption, but this is considered as part of the child support calculation and not as part of the property settlement.

Commonly Asked Questions

What should I do if I suspect my spouse is hiding assets?

If you suspect your spouse is hiding assets, it's essential to take swift and strategic action. Begin by gathering as much financial documentation as possible, including bank statements, tax returns, and investment records. Look for inconsistencies or unexplained transactions that may indicate undisclosed assets. Your lawyer can help you understand your rights, initiate a formal discovery process, and work with forensic accountants if necessary to uncover hidden assets. Transparency and full disclosure are key components of an equitable property settlement, and legal intervention may be required to ensure all assets are brought to light.

Do prenuptial agreements affect property settlements?

Prenuptial agreements significantly impact property settlements, particularly in cases of divorce or legal separation. These agreements, established before marriage, outline the distribution of assets and financial responsibilities should the marriage dissolve. A well-drafted prenuptial agreement can simplify property settlements by clearly defining which assets are considered separate and which are marital property.

Divorce in Clinton Township: Navigating Property Settlement

For residents of Clinton Township, navigating an divorce can be a smoother process with the right local knowledge and resources. Understanding the specific nuances of Michigan law can make a difference in the outcome of your divorce proceedings.

In Michigan, the Michigan Courts provide valuable resources and information for those going through a divorce. We are well-versed in the guidelines and regulations they enforce, making sure that your divorce is handled efficiently and in compliance with state laws.

One common challenge for Michigan residents is the division of retirement assets and pensions. Given the state's specific rules, it's crucial to understand that retirement benefits are not automatically part of the marital estate unless both parties agree. Each component of a pension plan must be explicitly awarded in the divorce judgment, which can be a complex process without proper guidance.

Another local challenge is the tax implications of divorce settlements. Michigan law requires courts to consider the tax consequences of stock options and other assets. However, the burden of proof lies with the party requesting that taxes be taken into account. This means you must present clear evidence of potential tax liabilities, which can be daunting without professional assistance.

Residents of Clinton Township also face unique challenges related to property settlements, especially when it comes to hidden assets. If you suspect your spouse is concealing assets, it's essential to act quickly. Gathering financial documentation and working with a knowledgeable attorney can help uncover any discrepancies and ensure a fair settlement.

By understanding the local landscape and leveraging available resources, you can navigate the complexities of an uncontested divorce in Michigan with greater confidence and ease. Our firm can help you every step of the way, working hard to protect your rights and resolving your divorce as smoothly as possible.

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