Married couples in Michigan may share their most valuable assets. They may both have their names on the deed for the home where they live. They may deposit their paychecks into joint checking accounts.
They may also have certain assets held separately in the name of each spouse. When professionals have 401(k)s or similar retirement savings accounts, they may make direct contributions to the account and may even receive employer-matching contributions.
In this scenario, given the fact that only one spouse actively made contributions to their retirement account, and that they may have even begun funding the account before getting married, can they claim the account as their separate property if they divorce?
Marital income is usually marital property
The Michigan family courts do not automatically defer to account ownership records when determining the nature of specific assets. Both assets and debts held in the name of one spouse can still be marital property that technically belongs to or is the responsibility of both spouses.
When one spouse has a retirement savings account, any contributions made during the marriage are likely marital property that they may need to report to the courts and address in the property division process. Spouses do not necessarily need to split the retirement savings account, so long as they determine what the marital portion of the account is and work that figure into the overall property division process.
Working with an experienced divorce attorney can help people understand how to approach their most important resources. Retirement savings and other assets held in the name of one spouse are often marital property that spouses must divide when they divorce.