» Michigan Property Division FAQs

Yes, if contributions were made during the marriage. Some exceptions might be made for money that was in an account at the time of marriage. The division often requires a special court order, such as a Qualified Domestic Relations Order (QDRO), to split the account without taxes and penalties.

Generally, inheritances are considered separate property in Michigan if they are kept separate. That means if you receive an inheritance and keep it in your own name, it may not be divided in divorce.

However, inheritances sometimes get “commingled”—for example, if funds are deposited into a joint account. Once that happens, it can be difficult to argue that the inheritance should remain separate.

Even when an inheritance is treated as separate property, it can sometimes still be considered if, for example, one spouse’s financial resources are much greater than the other’s, or if the non-owner spouse helped the asset grow. Because the rules are fact-specific, it’s important to discuss your particular situation with an attorney before assuming your inheritance is fully protected.

Pensions are considered marital property in Michigan, which means they can be divided in a divorce, just like a house, bank account, or retirement plan. This division can happen two ways:

Sharing future payments: 

In this approach, each time the employee spouse receives a pension check in the future, the other spouse receives their share directly. The court uses a special order (usually called a Qualified Domestic Relations Order, or QDRO) to instruct the pension administrator to divide payments. This method ties both spouses to the pension until it’s fully paid out.

A buyout or offset:

Instead of waiting for future payments, the pension is valued as of the divorce. One spouse may “buy out” the other’s share by giving them other marital assets of equal value (for example, cash, investments, or equity in the house). This method provides a clean break—each spouse goes forward without being financially tied to each other’s retirement.

Which option works best depends on the type of pension, the ages of the spouses, and the overall balance of the marital estate. Because pensions are often one of the largest assets in a divorce, it’s important to have experienced legal and financial guidance in valuing and dividing them.

What about service before or after the marriage?

Often, one spouse started earning their pension before the marriage, or will keep earning service credits after the divorce. In those cases, Michigan courts typically use what’s called a coverture fraction to figure out the marital share.

Here’s how it works in plain English:

• Imagine the pension is like a pie.
• The size of the pie is based on the total years of service.
• The “marital portion” is the slice earned during the marriage—from the wedding date to the date of valuation (commonly the filing date or date of divorce, depending on the circumstances).
• The coverture fraction is a simple fraction: years of service during the marriage ÷ total years of service.
• That fraction is applied to the pension benefit to calculate the part considered marital property.

For example, if your spouse worked 20 years total, but only 10 of those years were during your marriage, the marital portion would be 10/20, or half of the pension. Using this same example, if the monthly pension is $2,000 and the marital fraction is 10/20 (50%), the marital portion is $1,000/month. That $1,000 is then divided between spouses–$500 each.

Just like assets, marital debt is divided in divorce. In Michigan, that usually means the court looks at when the debt was incurred and for what purpose. Debts taken on during the marriage for the benefit of the household are generally considered marital debts, even if they’re in only one spouse’s name.

What if the debt is in only one spouse’s name?

It may still be considered marital. For example, if one spouse took out a credit card during the marriage to buy groceries or pay bills, that debt will likely be divided between both spouses.

What about debts I didn’t know about or didn’t agree to?

Unfortunately, those may still be treated as marital debts if they were incurred during the marriage and used for the household. However, if a spouse took on debt for secret purposes—such as gambling, an affair, or purchases that clearly didn’t benefit the family—the court may assign that debt solely to the spouse who incurred it.

If you suspect undisclosed debt, your attorney can use discovery tools to verify accounts and transactions before finalizing your judgment.

What about debts from before the marriage?

Debts incurred before the marriage are usually treated as that spouse’s separate responsibility, unless they were later refinanced or consolidated into joint accounts.

Why legal guidance matters

Because debt division depends not just on timing, but also on purpose and fairness, it can get complicated quickly. A skilled family law attorney can help uncover hidden or unknown debts, show whether certain obligations should be divided or kept separate, and advocate for a division that protects your financial stability.

Michigan follows “equitable distribution,” meaning property is divided fairly under the circumstances. While this generally means something close to 50/50 division, the facts may justify a different division. Courts consider factors such as the length of the marriage, ages of the parties, contributions to the household, earning ability, and relevant marital misconduct.

A family business is often one of the most challenging assets to divide in divorce. The first step is valuation—determining what the business is worth, often with the help of a financial expert. Once the value is established, there are a few possible outcomes:

• One spouse keeps the business and “buys out” the other’s share using other marital assets (cash, investments, property equity, or payments over time).
• The spouses sell the business and divide the proceeds.
• In rare cases, spouses continue to co-own and operate the business together after divorce. The court will not require this, but spouses can agree to it.

Because businesses involve both financial and personal investments, disputes over control and value are common. Having an attorney with experience in business division helps ensure the process is fair and protects your financial future.

If the home was acquired during the marriage, it is usually marital property regardless of whose name is on the deed. It can be sold and the proceeds divided, or one spouse may buy out the other’s interest. Your attorney will ask you about other facts that could affect the analysis, such as whose money funded the down payment.