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.
Contact us at 586-600-7623 to discuss your case and the options available.
Specific Types of Property and How They Are Treated In a Divorce
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.
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- 22 Years of Experience
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