What Is a Statement of Net Worth in a Michigan Divorce?
When you file for divorce in Michigan, state law requires each spouse to provide a detailed overview of their net worth. When the courts have an in-depth understanding of you and your spouse’s financial history, they can make informed decisions when it comes time to split up the assets.
As Michigan is an equitable property state, any assets and debts shared between spouses are divided based on what the courts deem fair.
If you’re considering filing for divorce in Michigan, you should know what to include in your statement of net worth and how this information may impact your case.
How a Statement of Net Worth Helps
Asset division can be one of the most complicated elements in any divorce. The more assets you and your spouse once share, the more complex this process can become.
Before the division process begins, Michigan courts require each spouse to prepare a detailed list of their assets and any supporting documents. Identifying all of your assets is critical for your attorney to begin building a case in your favor.
Net worth statements will vary depending on your unique circumstances but may include any of the following:
- Checking and savings accounts
- Investment and stock portfolios
- High-value property, such as cars and real estate
- Income information
- Tax returns
- Digital assets, like cryptocurrencies
- Credit card and loan statements
- Mortgage documents
Unfortunately, a spouse may often try to obfuscate financial information during a divorce. A skilled attorney can resolve any inconsistencies by implementing any of the following tactics:
- Written questions
- Forensic investigations
- Property inspections
As courts hold divorce cases to high standards, any attempt to mislead evidence can result in severe legal sanctions.
Separating Property and Assets in a Divorce
To effectively develop a statement of net worth, you’ll also have to distinguish between two types of property:
- Separate property
- Marital property
Per Michigan’s equitable distribution statutes, courts must assess property based on how and when each spouse obtained it.
Separate property is any asset or item owned by each spouse before they were legally married, with some exceptions. Common examples in Michigan include:
- Money, stocks, and bonds accumulated before marriage
- Inheritance earned before or during the marriage
- Real estate or properties purchased before the marriage
- Earned value of assets acquired through appreciation
In some cases, whenever a spouse plays a significant role in managing assets or earning profits from separate property, the courts may consider that property to be shared.
As the name suggests, marital property refers to any assets, items, and debt acquired during the marriage. Some common examples include:
- Real estate
- Loan debt
It’s often difficult to distinguish between marital and separate property, but a skilled divorce attorney can review your financial documents to ensure you leave no stone unturned.
Asset Division in Michigan
Drafting a net worth statement can pose a challenge when you and your spouse share substantial income, properties, or debt. Gucciardo Family Law dedicates itself to representing divorce clients throughout Michigan. Contact us today for a free consultation.
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