When couples in Oakland County go through a divorce, one of the more complicated tasks is dividing property. Marital property is generally split equitably between spouses. Keep in mind that equitably does not always mean the same as equally. However, property inherited by or gifted to one spouse during the marriage is often treated differently. Our family court judges make the final decisions about property division when the spouses aren’t able to do that on their own.
Inherited: Separate Property or Marital Property
Under Michigan law, property inherited by one spouse during the marriage is generally considered that spouse’s separate property. Similarly, a gift given specifically to one spouse, such as jewelry or money from another person, can also remain that spouse’s separate property.
When Separate Property Becomes Marital Property
Inherited or gifted property usually starts as separate property if it is gifted to only one of the spouses. It often loses that status when it gets commingled with marital assets. Michigan courts have held that separate property may be treated as marital if the owning spouse clearly intended to contribute it to the marriage. Some examples are:
- Depositing inherited or gifted funds into a joint bank account.
- Using inherited or gifted money to make mortgage payments on a jointly owned home here in Oakland County (or in Macomb or Livingston counties, too).
- Titling inherited or gifted real estate in both spouses’ names.
Exceptions That Allow Division of Separate Property
Even when gifted or inherited property is kept separate, our Michigan law allows a family court judge to invade (divide) separate assets in limited situations. If the other spouse contributed to the acquisition, improvement, or appreciation of the property, or if the division of only marital property would leave them with insufficient means for support, the court may include the separate asset as marital property when dividing the marital estate.
How Courts Decide
When deciding whether inherited or gifted property, separate property, should be divided, Oakland County divorce judges consider factors such as:
- Length of the marriage
- Was the asset kept separate or used for joint purposes?
- Was the asset meant for one spouse or both?
Practical Tips for Oakland County Residents
- Keep inherited or gifted assets separate from marital accounts.
- Maintain clear documentation showing the asset was kept in your name only.
- Consult with an experienced Oakland County divorce attorney (oaklandcountyfamilylaw.com) early in, or before the divorce process to protect your interests. Our top rated family law attorneys are often hired well before a divorce is started, to strategically plan for the upcoming divorce.
Contact a Family Law Attorney Today
At The Kronzek Firm, we advise Oakland County residents on marital property and how to protect their property in the event of a divorce. Having an experienced attorney who is familiar with the exceptions and factual nuances involved in Oakland County, Michigan marital property division. If you have questions about inherited or gifted property, contact us today to consult about a strategy tailored to the particulars of your situation.
📞 Our seasoned attorneys have fought for thousands of Michigan clients for more than 30 years. You can reach our Farmington Hills office 24/7 by calling (248) 479-6200.
You can also contact our divorce attorneys at: contactus@kronzek.law 24/7. We’re available every day for crisis intervention.
[Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult an attorney for personalized guidance.]