Michigan Divorce Laws: What You Need to Know

A marriage can end in divorce, but it doesn’t mean your finances have to take a hit. If you are careful and know the law, you can escape your divorce without having to start over financially. The laws in each state are different, so it is important to take the time to become acquainted with local laws. This guide will help you prepare for the legal implications of divorce in Michigan.

Consider working with a financial advisor if you have questions about managing your personal finances during a divorce.

How to File for Divorce in Michigan

Eligibility

To get a divorce in Michigan, either spouse must have lived in the state for at least the last six months.

Grounds for a Divorce in Michigan

Michigan is a purely no-fault divorce state, so neither party has to prove any wrongdoing by the other. The only legal grounds for divorce in the state are that the marriage broke down with no reasonable likelihood of reconciliation.

Process to Divorce

The divorce process in Michigan is pretty straightforward, but there are several steps you need to follow.

File a divorce complaint. First, one spouse will need to file a divorce complaint. This spouse becomes known legally as the plaintiff. The other spouse, legally known as the defendant, will then be served with papers. He or she then has 21 days to file an answer with the court. If there are children involved, the court may issue a temporary order regarding child support and custody.
Discovery and negotiation. Next, there is a discovery period during which both parties interview witnesses, gather evidence and prepare their cases. After this, negotiations will take place between the two parties. The lawyers will work together to try to come to a mutual decision on issues like asset distribution, alimony and child custody.
Settlement or trial. If a settlement is doable, the parties will then present it to the judge.

If a settlement cannot be had, the case goes to trial. Both sides present testimony and evidence, after which the judge makes a legally binding decision.

How to Split Up Assets During a Divorce in Michigan

Assets are split in Michigan based on whether they are marital or separate property.

Marital property. In Michigan, marital property is anything that was earned or acquired by either spouse during the marriage. This can include things like money, homes, cars and pension plans.
Separate property. On the other hand, separate property is anything that was earned or obtained before the marriage. This is not part of the divorce settlement.

Exceptions to these rules are property received as a gift or inheritance. Likewise, property that’s part of a legal document, like a prenuptial agreement, is separate.

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How to Divide Property in Michigan After a Divorce

Michigan is an equitable distribution state. This means a judge splits property between the spouses based on what they consider fair. This is much different than a simple 50/50 split.

Factors the judge will consider include the length of marriage and the contributions each spouse made to the total property. They will also examine the age and health of each spouse, their needs and requirements and how they each conducted themselves during the marriage. This includes adultery.

How to Manage Child Support and Alimony Under Michigan Divorce Laws

There is a fairly complicated formula to determine child support payments in Michigan. This calculation uses each parent’s total income, the total time they spend parenting and the estimated cost of raising the children.

Based on this, the court determines how much the non-custodial parent should pay the custodial parent. It’s assumed that the custodial parent will spend their portion on their time with the kids.

There are four types of alimony in Michigan: temporary, periodic, permanent and lump-sum.

Temporary alimony. Temporary alimony is an order for one spouse to support the other during the divorce. This alimony only lasts until the divorce is finalized.
Periodic alimony. Periodic alimony is paid by one spouse to the other for a set period. This allows the supported spouse to become self-supporting, either by finding a job or getting the training they need.
Permanent alimony. Permanent alimony includes payments from one spouse to the other until one dies. This is rare and only applies when one spouse can’t become self-supporting because of age or health concerns.
Lump-sum alimony. Finally, there is lump-sum alimony, where one spouse pays a total reward upfront and nothing more.

There isn’t a formula for calculating alimony payments. The judge considers the needs and abilities of both parties, as well as each party’s behavior during the marriage (including adultery), when deciding how much alimony one spouse must pay to the other.

401(k) and IRA and Divorce in Michigan

Retirement accounts may become part of the divorce settlement. This means some money must be withdrawn and transferred to the other spouse.

Normally, withdrawing from a 401(k) or other workplace retirement plan means facing taxes and penalties, but the judge can issue a qualified domestic relations order (QDRO) to avoid that.

A QDRO is not needed for an IRA or other type of retirement plan, but the divorce judgment must specify which funds must be removed to avoid taxes and fees.

Divorce and Estate Planning in Michigan

While married, you and your spouse may have had an estate plan. However, with your divorce, that plan likely needs some updating.

Asset distribution. Most assets typically pass to the spouse after death, but that likely needs to change after divorce.
Minor children. If you have minor children you want to receive your assets, you’ll need to set up a trust.
Designations. Take the time to change your designated inheritor on all financial accounts, including retirement savings accounts. In addition, make sure to change the designated inheritor for retirement accounts and any other financial holdings.
Medical directives. If you filed any advance directives or powers of attorney during the marriage, be sure to change them unless you want your ex-spouse to make medical decisions for you.
Guardianship. Lastly, talk with your ex-spouse about plans for your children if you both should die. You may already have a plan, but check in to make sure nothing has changed.

Financial Planning Considerations During Divorce

Divorce affects nearly every part of a household’s financial structure, often all at once.

Income that once supported one household must now support two, while shared assets and debts need to be reassigned. During this period, documenting accounts, balances, debts and ongoing expenses creates a clear picture of what exists and what must be divided.

Be sure to account for the following:

Bank accounts
Retirement plans
Credit cards
Loans
Insurance policies
Any other assets held jointly or individually.

Cash flow also tends to change immediately. One spouse may lose access to shared income, while new expenses such as housing, legal fees or child-related costs appear quickly.

Reviewing monthly obligations and identifying which expenses will remain, which will disappear and which will increase helps frame realistic expectations. Temporary court orders may cover support or living arrangements, but they do not replace the need for a workable personal budget during and after the divorce process.

Asset division is rarely just about headline values. Retirement accounts, homes, stock portfolios and pensions all carry different tax treatments and liquidity constraints. A smaller, easily accessible asset may have more short-term value than a larger asset that triggers taxes or penalties when used. Viewing assets through an after-tax and usability lens often leads to different priorities than focusing on equal dollar amounts alone.

Divorce also creates a reset point for long-term planning. Beneficiary designations, estate documents, insurance coverage and savings goals often reflect a prior life structure that no longer applies.

Updating these items as circumstances change helps align financial decisions with new responsibilities, timelines and personal goals.

Bottom Line

Wooden cutouts of a husband and wife on either side of a calculator, symbolizing divorce.

Michigan is a no-fault divorce state, so it doesn’t matter if a specific incident leads to your divorce or not. It’s also an equitable distribution state, so marital property will be divided based on what is fair, not simply split 50/50. Once all filings have been made, the two parties will have a chance to come to a settlement. However, if one cannot be reached, prepare for a trial where a judge makes a decision.

Financial Planning Tips

A financial advisor can be a good idea no matter what the state of your marriage is. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Michigan has a flat income tax across the state, but some cities do charge an additional rate. Sales taxes are relatively low for the region, and there are no additional local sales taxes. Michigan has some of the highest average effective property taxes in the nation, though. Use SmartAsset’s Michigan tax calculator to estimate your state income taxes.