Michigan is classified as a separate property state. This legal distinction means that assets acquired during a marriage are generally owned by the individual who earned or received them. For example, if one spouse receives an inheritance or earns a salary, that property remains solely theirs unless specific steps are taken to share ownership. This contrasts with community property states where most assets acquired during marriage are considered equally owned by both spouses.
The separate property system significantly impacts asset division in cases of divorce or death. It provides individual spouses with greater control over their earnings and acquisitions, promoting financial independence. Historically, separate property systems were common in states influenced by English common law, while community property systems have roots in Spanish and French civil law. This difference in legal tradition underlies the varying approaches to marital property across the United States.
