If your spouse handled every bank account, bill, investment or business record, divorce may leave you feeling financially powerless. You may not know what you own, what you owe or whether important information is missing. However, managing the finances does not give your spouse greater rights to marital property. Michigan courts seek an equitable, or fair, division of marital assets and debts. Fair does not always mean a strict 50/50 split because courts consider the circumstances of each marriage.
Financial records to gather before divorce
Start by saving copies of records you can lawfully access. Useful documents may include:
- Federal and state tax returns from the past three years
- Recent checking and savings account statements
- Retirement and investment account statements
- Mortgage statements, deeds and available property appraisals
- Credit card and loan statements
- Business tax returns, bank statements and financial reports
These records can help identify property, debts, income and spending patterns. You can also list accounts, property or debts that you know about but cannot verify.
How Michigan classifies marital and separate property
You must not assume an account belongs solely to your spouse because only their name appears on it. Michigan courts look beyond title when deciding whether property is marital or separate. Assets acquired during the marriage generally form part of the marital estate, while property owned before marriage or received as a gift or inheritance may remain separate.
Mixing separate funds with marital money or using marital efforts to increase an asset’s value can complicate that classification. Note when each asset was acquired, where its funds came from and whether either spouse contributed to its value.
How legal counsel can help obtain missing information
During the Michigan divorce process, spouses generally must exchange a Verified Financial Information Form within 28 days after service of the defendant’s initial response. An attorney can review the forms and use document requests, interrogatories, depositions or subpoenas to seek omitted information. Courts may impose sanctions and, depending on the facts, award the other spouse all of a concealed asset or attorney fees incurred as a result of discovery misconduct.
Plan for your financial transition
Property division addresses your marital estate, but your daily financial needs also matter. Review your expected housing, insurance, debt and household costs to understand what your post-divorce budget may require. This broader view can help you assess how different settlement terms may affect your financial stability.