Laurie Schmitt Family Law

W. Michigan family law specializing in Collaborative Divorce

616.608.4634

Laurie Schmitt

What Is Considered Marital Property In The State of Michigan?

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Is the house considered marital property?

Property in Michigan

If the house was acquired during the marriage and paid with marital funds, it is marital property.  If one party is to retain the house, the house should be appraised (considering the volatility of the current market).  Once the fair market value has been determined, then we subtract all mortgages and home equity loans from the value to determine the net value of the home.  That net value will be divided equally between the parties.  This means the person retaining the home will owe the other party one half of the net value.  If the house was owned by one the parties prior to marriage, then we have an issue of “separate property”.  Separate property means that one party purchased the house prior to marriage and may have a claim to the equity that was in the home at the time of the marriage.  If this is the case, then it needs to be determined what the value of the home was prior to marriage, minus any mortgage on the home, to determine the net value.  That net value may be given to the party before determining the true net value to be divided.   As an example:

Home purchased prior to marriage

  • Appraised value at time of marriage  $100,000
  • Mortgage at time of marriage                $50,000
  • Net value                                        $50,000

The party owning the home prior to marriage would be given credit for the first $50,000.00 of equity in the home before determining what would be paid to the other party.

Of course, this example is an over-simplification, and further information would be needed before Schmitt Law, PLLC could provide legal advice about your specific case. Also see my blog “Marital Property verses Separate Property” for more information regarding this subject.

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Are bank accounts considered marital property?

If the bank accounts were opened during the marriage, they are marital property.  It does not matter if each party contributed equally to deposits into the account.  This means the person who may have contributed more does not get a larger division of the account, as the entire balance is considered marital for the purposes of division of the account.

Are retirement accounts considered marital property?

For the purposes of this blog, I will provide a simple answer.  If the money in the retirement account was acquired prior to marriage, and no other monies were deposited into the account during the marriage, the account most likely will be classified “premarital” and remain the sole account of one party.  This means it will not be divided between the parties.

If the money in the retirement account was deposited into the account during the marriage, the account will be classified as marital and should be divided equally between the parties.

Note, that this is a complex subject, and should be thoroughly discussed with your attorney, as there are gray areas to this issue that will not be discussed in this specific blog.  Note that this is a complex subject, and the answer provided is an over-simplification of the subject.  Further information would be needed before Schmitt Law, PLLC could provide legal advice about your specific case.

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Are vehicles, boats, or other recreational vehicles considered marital property?

 If the vehicle was purchased during the marriage, it will be classified as marital property.  The most typical scenario is that one party will retain the vehicle, the equity value* of the vehicle will be determined, and the other party will receive credit for one-half of the equity value.  Another scenario is that the vehicle may be sold, and the proceeds divided equally between the parties.

If the vehicle was purchased prior to the marriage, and marital funds were not used to purchase or pay for the vehicle (or any loan), the vehicle most likely will be classified “premarital” and remain the sole property of one party.  This means that not equity value will be shared with the other party.

* Equity value: the market value of a specific item, minus any loan owed on the item = equity value

Are wedding rings considered marital property?

 Engagement/Wedding rings are conditioned on the marriage taking place.  If you were married, then the ring is considered a gift, and does not need to be returned to the other party.  If there was no marriage, then the ring must be returned.  In a divorce situation, each party retains their respective engagement/wedding rings as their sole personal property.

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Are pets considered marital property?

In the State of Michigan, animals are considered “personal property” for the purposes of property division.  Some judges in Michigan treat dogs like any other personal property, in which case the highest bidder for the animal should win. The traditional method is simply assigning fair market value to the dog.

Some judges will consider other issues in determining the division of animals:

  • Nature of the pet, i.e., companion, family pet, service animal. •
  • Sentimental value of the pet to one party versus the other.
  • In which party’s name is the dog registered?
  • Even if the property is separate (i.e., owned by one party before the marriage) it can be transmuted into marital property through use, care, feeding, walks, etc., by the other party.
  • Who purchased the animal?
  • Who is the primary caretaker?
  • Show receipts for veterinary care by one party.
  • Show licensing records.
  • Grooming receipts by one party.
  • Dog training classes by one party.
  • Who feeds the dog?
  • Who buys things for the dog?
  • Neighbors’ testimony that one party always walked the dog,

Also see my blog “Divorce “The New Custody Case – Pets!” for more information regarding this subject.

To discuss solutions with your property division issues, or any other aspect of your divorce process, contact me, Laurie Schmitt, at Schmitt Law, PLLC. I am an Attorney, Mediator, and Collaborative Divorce lawyer.

Collaborative Divorce Process

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We can agree that divorce is a difficult process for a married couple to go through. In the collaborative divorce process, the focus is on cooperation, not litigation.

In the collaborative divorce process, the parties resolve their issues in a respectful manner, using a team approach.  The team assists the parties in crafting solutions in the best interest of each party, without involving the judge to make their final decisions.

A few of the differences between the collaborative divorce process and a litigated divorce are:

Collaborative Divorce Process
  • The parties agree to the collaborative divorce process and agree to resolve their differences without court intervention.
  • The emphasis is on fashioning solutions that take into account each of the party’s needs and goals and keeping the attention on the needs of their children.
  • The parties look to reach a fair and equitable settlement of all their issues, while  maintaining control of the final outcome.
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In the collaborative divorce process, the parties, their respective attorneys and a coach meet in a group setting.  An agenda is set for each meeting, to assist the team to stay on track.  These meetings are designed to encourage the sharing of ideas and settlement options.

The collaborative divorce process requires the parties to commit to work together, and agree to forgo litigation.  When the parties share the mindset that they want to control the end result of their divorce, and want to make decisions in the best interest of their children, the collaborative divorce process is a great solution to protracted and expensive litigation.

Laurie K. Schmitt, founder of Schmitt Law, PLLC, is an Attorney, Mediator, and Collaborative Divorce lawyer. When possible, she guides her clients through amicable divorce settlements so they can move forward with their life.  Contact Laurie to schedule a consultation to discuss the collaborative divorce process and how it can benefit you.

Preparing For The Initial Consultation

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You made the appointment for your initial consultation and now wonder what you should bring to the first meeting with the attorney.  For the attorney to prepare a snapshot of your case, you should be prepared to answer questions regarding your finances and property holdings.  To make the most of that first meeting, I suggest having the following information and/or documentation with you:

Consultation for Divorce
  1. List of all bank accounts.  Provide account numbers, current balances, and statements for the last three months for each account.  (savings, checking, CD’s, credit unions)
  2. Copies of titles and registrations for all vehicles, boats. etc.
  3. Blue book values on all vehicles and boats.  Print reports for private party values for each vehicle and/or boat.
  4. Warrant Deed and statements reflecting mortgage balances owed for all real estate.
  5. Copy of Appraisal for home (if recent).
  6. Copies of life insurance policies.
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  1. Most recent property tax statement and any recent appraisal reports for all real estate.
  2. Statements for each retirement account statements (401k’s, IRA’s, 403B’s, pensions, profit sharing, etc.).
  3. Statements for investments (stocks, bonds, mutual funds, etc.).
  4. Information for inheritance received during the marriage.
  5. List all credit cards and other debts (mortgages, car loans, home equity lines of credit) indicating whether joint or individual, and balance owed, and provide copies of statements for the last three months for each.
  6. Documents for all other indebtedness.
  7. Any financial statements recently prepared (ex: for loan applications).
  8. Recent paystubs for both spouses.
  9. The last three years’ tax returns with W-2’s and schedules attached.
  10. Business interests, corporate stock certificates, etc.
  11. Franchise agreements.
  12. Employment Contracts.
  13. Lease agreements.
  14. Copy of household budget if used.
  15. Prenuptial or postnuptial agreements.
  16. If you have children under 18:
    • Verification of yearly daycare costs
    • Information on, or copy of, current health care cards
    • Cost of employer provided health insurance with breakdown for costs for self and cost for self with family
  17. Often, attorneys do not need to review all of these documents at the initial interview.  However, having the information in your hands during the first meeting will assist you in answering questions regarding your finances.  And the more specific the information you can provide to the attorney, the better the legal advice will be.

For more information about your rights as it pertains to divorce, contact me, Laurie Schmitt, Attorney at Law, at Schmitt Law, PLLC, by calling 616-608-4634.

Contested vs. Uncontested Divorce

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One question I receive often is what is the difference between a contested and uncontested divorce.  The following chart diagrams the difference between the two types of divorces:

CONTESTED DIVORCEUNCONTESTED DIVORCE
A summons and complaint for divorce is filed with the court. A summons and complaint for divorce is filed with the court.
The opposing party is served with the summons and complaint for divorceThe opposing party is served with the summons and complaint for divorce.
The opposing party may file an answer to the complaint for divorce.The opposing party may file an answer to the complaint for divorce.
The affidavit of service is filed with the court showing that the opposing party was served with the complaint for divorce.The affidavit of service is filed with the court showing that the opposing party was served with the complaint for divorce.
The court sets a scheduling conference – This hearing is where the court sets dates for mediation and discovery.The court sets a scheduling conference – This hearing is where the court sets dates for mediation and discovery.
Discovery is exchanged – discovery is a process in which each party asks the other for documents.  These documents include, but are not limited to: deeds, titles, registrations, appraisals, life insurance policies, retirement account information, credit card and other indebtedness, paystubs, tax returns, business documents (if one party owns a business), and any other documents specific to the parties.   The parties work together to craft the terms of their judgment of divorce.  These will include provisions for custody, parenting time, division of real and personal property division of assets and debts, and any other provisions specifically related to the parties’ divorce.
Mediation is held – mediation is a process wherein the parties meet with a third-party neutral trained in domestic relations mediation. The mediator assists the parties in reaching an agreement.  If the parties are unable to reach an agreement, the case moves forward in the court. Once the parties reach an agreement, and after the statutory time has lapsed, a final hearing is set and held and the parties are now divorced.
The court sets a settlement conference –A settlement conference is a hearing where the court meets with the attorneys and parties to address the outstanding issues and see if settlement can be reached. 
If the parties are unable to reach an agreement at the settlement conference, the case is set for trial. 
Trial is held wherein both parties present testimony to the judge.  The judge reviews the testimony and makes the final decision on the outstanding matters. 
A judgment of divorce is drafted to comport with the judge’s ruling, the judge reviews and signs the judgment of divorce and the parties are now divorced. 
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As you can see, a contested divorce is a much lengthier process, and more costly and time consuming.  A contested divorce puts all of the control of the outcome of the parties’ divorce into the hands of the judge.  An uncontested divorce allows the parties to maintain total control of the outcome.  When parties are able to reach an agreement through an uncontested process, they are more satisfied with the results, and rarely need to return to court for post-divorce matters.

For more information about how an uncontested divorce can work for you, contact me, Laurie Schmitt, Attorney at Law, at Schmitt Law, PLLC, by calling 616-608-4634.

What Is A Child Centered Divorce?

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You may be thinking what is a child centered divorce, and can a child centered divorce really be achieved?  A child centered divorce is where the parties are concerned about the impact of their divorce on the children and maintain the focus of the divorce on the needs of the children.  And yes, this can be achieved.

The following are important points you should know about a child centered divorce:

1.         Make your divorce “all about the children”, and agree to work together to keep the children’s emotional needs as their focus of the divorce.  This means that the parties’ actions, now and in the future, will be in the best interests of their children, and they will make their decisions and continue to communicate with this in mind.

Child-Centered Divorce

2.         The parties are banned from discussing details of the divorce litigation with them. This is not to say that they children should not be told about the divorce.  But information provided to the children must be in the most general terms, age appropriate, and without specific details or viewpoints.

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3.         Do not disparage the other or their family members in front of the children.  The parties shall refrain from disrespecting the other or their families and friends, and shall refrain from making disparaging remarks, false statement, and false accusations about each other and encourage their friends, relatives, and neighbors to avoid making the similar remarks.

4.         Agree never to place the children in the middle of the divorce.  It may be difficult to refrain from talking about the divorce, but with a little willpower, it can and should be done.  Children love both parents and should not be placed in a position that they feel they must take your side or choose between their parents.  Therefore, there should be no discussion, derogatory comments, or questioning of the children concerning the other parent, the other parent’s relationships, or the other parent’s activities.

5.         Children should be assured that they are not the cause of the divorce, and that both of you still love them even though you will not be living together as a family any longer.

In summary, children should be left out of disputes, and certainly do not need to know specifics about the divorce litigation.  The parents are the ones who should carry that burden of the divorce process, not the children.  Support the children by being civil to one another, and understanding that the children may be struggling with this process as well.  Put the children’s needs first to avoid putting the children through needless drama.

For assistance with your divorce process, contact Schmitt Law, PLLC to schedule an appointment.

Raising Children As A Single Parent: From A Single Father’s Perspective

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I have had the opportunity and it has been a great pleasure getting to know a gentleman who is a single father of two now grown daughters.  I will refer to him as John.  I was taken with John’s story, and want to share his story as I believe a benefit can be found to other parents in knowing that you are not alone in your struggles as a single parent.

single father with daughter

John has been divorced for several years.  In the divorce, he was granted sole legal and physical custody of his two daughters.  After the divorce, John’s former spouse became an absent parent, failing to have any contact with the parties’ daughters for over 10 years. John was left to raise and support his daughters on his own.

I am impressed with John’s ability to set aside any anger he may have harbored from the divorce to raise two very successful young women.  The following is John’s story.

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How do you reconcile raising children on your own, receiving no assistance from the other parent, as they are absent in the children’s lives?

John stated that when you are a single parent, you take on the role of both parents. One of the challenges John discussed was that when you are going it alone, it’s about planning.  You don’t have a partner to assist, so you need to be prepared and well organized.  Shuttling children back and forth to the myriad of events they have requires planning.

Being a single parent can present its share of challenges.  John had to address uncomfortable questions and issues that naturally arise in girls lives that would have been easier for a mother to address.  Throughout their young lives, John’s girls lacked the ability to gain the female perspective.  When his girls wanted to attend homecoming, he had to take on the role of mom and go dress shopping!  But John did the best and pushed through his girls’ childhood events, wearing the hat of both parents.  John also thanked his family, stating that he relied on his family to get him through some tough times.

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John also discussed the financial struggles that come from being a single parent.  John received no financial assistance from his former spouse.  John and his daughters went from living an upper middle-class life to a very different lifestyle after the divorce.  John reflected on the fact that when he and his wife were married, they had the children in extra-curricular activities.  After the divorce, money was tight.  However, he knew the importance of these activities in the children’s lives, and wanted to do everything he could to make sure the children had the same experiences they had during the marriage.  John stated that he swallowed his pride and asked people to reduce their enrollment fees so that the girls could continue with their extracurricular activities.  John was happy when people came through, going above and beyond to work with him to ensure his daughters could continue to participate.  John stated there are times you just have to ask, and people will help.

How do you set aside whatever anger or disappointment you have with the failed marriage/relationship, or with the perceived transgressions the other party may have made against you to allow the children to have a relationship with the other parent, if and when the decide to do so?

John stated that the failure of the relationship was not the children’s fault.  John has always put the children’s needs first.  John told me that you have to ask yourself from the moment the marriage ends what can I do to make my children’s lives the best that it can be.

John believes that children grow up and make decisions on their own.  However, if they are raised with a specific narrative such as the other parent is bad, a deadbeat, didn’t want you, doesn’t care about you, they have a difficult time moving past years of disparaging remarks to develop a relationship with the other parent.  John wanted to leave it open for the children to make their own decisions about what (if any) relationship thy would have with their mother.

John stated that your entire focus needs to remain on the children; you need to put the children first.  And you need to realize that the sacrifices you make now will pay off when you see your children be successful and happy.

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How did you raise the children so that they are free from guilt to have a relationship with the other parent?

John stated that he left the door open for his children; and kept an avenue open for his former spouse to approach the children.  No matter what happened in the divorce, his former spouse was still the mother of these two girls, and would always be their parent.  He never disparaged his former spouse to the children, nor did he force the girls to contact her.  He assumed that when his former spouse was ready to resume a relationship with the girls, she would step forward.

John knew that he could not erase years of anger and disappointment he may have felt because his former spouse failed to take any role in the children’s lives.  But John knew that he could smooth it over for his daughters, wanting the best for his daughters. John knew that he would have to compartmentalize his feelings about the divorce and the lack of assistance he received from his former spouse for the sake of raising happy children.

John summarized that raising two girls on his own was life altering for him and his daughters, and that the changes to their lives was immeasurable.  Good news…after ten years, John’s former spouse has now reconciled with their daughters, and is working to rebuild a relationship with them.  John’s daughters are now grown, married and have started families of their own.  John and his former spouse, realizing the importance of family, have worked through their issues and are able to hold and attend family functions together with their adult daughters and their families.

I wanted to share John’s story so that you would know you are not alone in this endeavor and that you can successfully raise healthy and happy children as a single parent.

For assistance with your divorce, contact Schmitt Law, PLLC to schedule an appointment.

The Do’s and Don’ts of Holiday Parenting Time

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Once again, the holidays are fast approaching.  Children of separated or divorced families often find themselves in a difficult position…. torn with loyalties.  Children grow up fast.  Divorce can make the holidays difficult for both parents and children. Parents should shift their focus on building great holiday memories for the children to look back on.

Holiday Parenting Time
  • Do: encourage your children to have a wonderful time at the other parent’s home
  • Don’t: make your children feel bad about wanting to spend time with the other parent during the holidays
  • Do: provide your children the opportunity to speak to the other parent (text, phone, skype) if it is geographically impossible for the children to spend time with the other parent
  • Don’t: grill your children when they return home from the other parent’s home
  • Do: give your children the time to spend with their siblings and step-siblings
  • Don’t: try to compete with the other parent for the children’s attention
  • Do: do allow the children to call their grandparents (from the other parent)
  • Don’t: make holiday gift giving a competition 
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  • Do: allow the children to take their gifts to the other parent’s home
  • Don’t: don’t purchase the children’s gifts that you know the other parent would be extremely opposed to
  • Do: allow the children to come up with new holiday traditions
  • Don’t: dwell on old traditions (“when we were a happy family”)
  • Do: allow the children to attend school and church holiday functions, even when they fall on your parenting time
  • Don’t: ask the children to choose who had the better holiday, it’s not a competition
  • Do: understand that your children may be struggling with their loyalties and validate their feelings
  • Don’t: introduce new significant others to the children.  The holidays are not the appropriate time to introduce the children to your new significant others as the focus should be on their time with you.
  • Do: be respectful with the other parent’s holiday time by exchanging the children on time and at the designated location
  • Don’t: purchase the children a gift that will be a financial burden to the other parent (unless you have discussed it with the other parent and agreed on the purchase)
  • Do: respect the other parent’s religious observations, or lack thereof, when you are talking to the children – if you can’t say anything nice, say nothing at all!
  • Don’t:  over plan every minute of your holiday parenting time, to include spending the entire holiday parenting time traveling to see extended family
  • Do: understand that your children are older than you think they are, have friends, and are growing more independent…they may want to spend time with their friends over their holiday breaks
  • Don’t:  argue with the other parent about holiday plans in front of the children

For assistance with your divorce and to develop a fair and equitable plan for holiday parenting time, contact me, Laurie Schmitt, at Schmitt Law, PLLC. I am an Attorney, Mediator, and Collaborative Divorce lawyer.

The Do’s and Don’ts of Communication With The Other Parent

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 The unintended consequence of divorce often produces the inability of parents to effectively communicate about the children.  The end result is that parents often place the children in the middle of the continual war.  The goal should be to raise healthy and happy children, not to place them between adult hostility.  Both parents need to be informed about important issues regarding the children, and parents need to develop a way to communicate with each other for the well being of the children.  

The following are some of the largest issues between divorced parties:
  • Do: inform the other parent of medical issues regarding the children that take place during your parenting time
  • Don’t: attempt to hide medical issues regarding the children.  This is a behavior that is not in the best interest of the children.
  • Do: inform the other parent about special school, church, and extra-curricular events that the children will be participating in
  • Don’t: tell the other parent about these events at the last minute in an attempt to effectively prevent them from attending
  • Do: discuss with the other parent enrollment in extra-curricular events prior to enrolling the children, especially if these events will take place during the other parent’s time
  • Don’t: enroll the children in so many extra-curricular activities that it negatively impacts the other’s parent time with the children. Each parent should be allowed to have meaningful time with the children.
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  • Do: focus your future conversations with the other parent about the children, not about what caused you to seek a divorce.
  • Don’t: engage in non-productive conversations with the other parent.  There is no need to continue living through your divorce.
Parent do’s and don’ts
  • Do: be respectful in your conversations with the other parents, especially when the children are present.
  • Don’t: argue or engage in name calling with the other parent when the children are present.  This happens often during exchanges, and creates much anxiety in the children. Fake it until you can make it!
  • Do: respect that each parent has created a new life, to include a new lifestyle and rules for the children.
  • Don’t: disparage the other parent’s lifestyle or home life with the children
  • Do: try and work together to enforce and support common sense rules for the children in both homes.
  • Don’t: belittle the rules and enforcement of those rules at the other parent’s home.  This simply creates confusion with the children.
  • Do: talk to the other parent about school related issues or challenges that the children may be having
  • Don’t: decide the other parent does not need to be informed about school related issues. The children will benefit when both parents take an active role in the children’s education.

For assistance with your divorce and to learn more about how to develop positive communication with the other parent, contact Schmitt Law, PLLC to schedule an appointment.