Michigan is what is known as an equitable distribution state. Property division. There is no requirement that property awards to each party be precisely equal; however, there is a presumption that the division will be roughly congruent. If a court departs from this presumption of congruence, it must explain its reasons clearly.
The most frequently cited list of considerations in Michigan cases in determining a equitable distribution of marital property is the source of the property, contribution toward its acquisition, the number of years of married life, the needs of the parties, the needs of the children, the earning power of the parties, and the cause of the divorce. This list is not exhaustive, and the court may consider any other factors it finds to be relevant in a given situation. Although fault is still a consideration in property division, it may not be used as a punitive basis for an inequitable result.
Before dividing property, courts and lawyers face the task of identifying what is to be divided. Parties frequently claim that certain separate property is not part of the marital estate and should therefore not be counted when adding up the shares that make up the roughly congruent division. Separate property claims typically involve assets that a party owned before the marriage, gifts or inheritances, assets received after separation or filing, or assets or appreciation traceable to those items.
Lawyers must be able to assess the value of the parties’ assets. This is necessary to help the client evaluate what is fair in a negotiated settlement or to prove the value in court if the case becomes contested. Expert opinions are not legally required, but with complex or valuable assets, especially business interests, an appraisal is typically needed.
The tax consequences of retaining or selling an asset also must be considered.