Financial problems are a very common contributory factor for the breakdown of a marriage. However, many spouses who want to divorce their partner because of financial issues are worried about how the debt will be divided.
Before taking action to file for a divorce in Michigan, it is vital that you know how the law will determine the likely financial implications. By having a thorough understanding of the way that the law works in Michigan, you will be able to understand how to formulate a successful divorce strategy.
Michigan asset division laws
Michigan laws regarding asset division at divorce follow the legal theory of equitable distribution. This means that unlike several other states, assets and debts will not be blindly divided equally between spouses. Instead, an agreement that is deemed to be equitable and fair will be sought by the courts.
How does equitable distribution affect debt?
In Michigan, debts will typically be divided equally unless the judge believes that this would be unfair. If the judge believes that an unequal attribution of debts would be fairer, they will decide exactly how these debts should be divided.
Under what circumstances may debts be divided unequally?
The debt will possibly be divided unequally if one spouse has the ability to pay off the debt easily. In addition, if one spouse was responsible for the debt, for example, if they developed a gambling addiction, they will probably be declared responsible for paying it off.
If you want to ensure that you do not incur debt as a result of your divorce, it is important that you are proactive in understanding the law.