Overview
Michigan is an equitable distribution state, meaning that courts divide marital property in a manner considered fair and equitable given the specific circumstances of the parties. Michigan courts often produce outcomes close to a 50/50 division but can deviate significantly based on statutory and case law factors. Michigan enforces prenuptial agreements under both statute and common law, with a long history of upholding properly executed agreements.
What Counts as Marital Property?
Marital property in Michigan includes all assets and debts acquired during the marriage by either spouse. This includes wages, real estate, retirement benefits earned during the marriage, and the marital portion of business growth. Michigan courts also consider the appreciation of marital assets during the marriage as part of the marital estate subject to division.
What Stays Separate?
Separate property in Michigan includes assets owned before the marriage, gifts and inheritances received individually, and any property designated as separate in a valid prenuptial agreement. Michigan courts generally do not divide separate property; however, if separate property was used for marital purposes or commingled with marital funds, it may become subject to division. Courts can also invade separate property if marital assets are insufficient to support a spouse.
Prenuptial Agreements in Michigan
Michigan enforces prenuptial agreements (called “antenuptial agreements”) under Michigan Compiled Laws § 557.28 and case law. A valid prenup must be in writing, fair when executed, and made with full knowledge of each party’s financial circumstances. Michigan courts will void a prenup that was entered under duress, fraud, or mistake, or that is unconscionable. While Michigan has not adopted the UPAA by name, its common law standards are similar and result in consistent enforcement of well-drafted agreements.
Key Considerations
- Michigan courts retain authority to invade separate property if marital assets are insufficient — a prenup is the most reliable way to protect premarital wealth.
- The “fair and equitable” standard in Michigan often results in near-equal division, particularly in long marriages, unless a prenup specifies otherwise.
- Michigan does not have a state income tax on retirement income in most circumstances, making retirement account division a particularly important prenup topic.
- Prenups in Michigan can address both property division and spousal support, but provisions that encourage divorce may be voided as against public policy.
Key Statutes
- Michigan Compiled Laws § 552.401 (equitable division of marital property)
- Michigan Compiled Laws § 557.28 (antenuptial agreements)
This is educational content, not legal advice. Consult a licensed Michigan family law attorney for guidance specific to your situation.