Two proposed pieces of Michigan legislation aim to create a dramatic shift in the distribution of assets for divorces where a spouse owns a business that prospers during the marriage. Presently, the law treats the growth or appreciation of a business occurring during the marriage as marital property, resulting in a 50/50 split between the spouses. The new law proposes a complete policy change and would generally classify appreciation in the business during the marriage as property of the spouse owning the business.
Almost everything and everyone is divided in divorce: from friends and in-laws to the house and furniture. When a divorcing couple owns a business, it's almost a certainty that the business is about to undergo major changes, too.