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What Is the Difference Between Real Property and Personal Property?

by | Oct 8, 2024 | Family Law |

Considering a divorce brings a multitude of concerns, and one major question that arises is how your property will be split between you and your spouse. Interestingly, not all property is treated equally in legal terms; distinctions are made between real property and personal property. In this post, our team at The Law Offices of Michael A. Robbins will leverage our decades of experience in divorce law to illuminate these differences and provide clarity to those facing these challenging decisions.  

Real Property

Real property, also known as real estate, is land and any permanent structures or improvements attached to it. This broad category includes residential homes, commercial buildings, and even natural resources such as minerals, water rights, and timber. When navigating the complexities of a divorce, real property often emerges as the most valuable asset owned by a couple, making its valuation and division critical in the proceedings.

In Michigan, the law stipulates that the value of real property will typically be divided equitably between the two parties involved in the divorce. However, this equitable distribution can be influenced by various factors. If there is substantial evidence that one spouse entered the marriage with a greater amount of assets or made notable contributions toward the upkeep and enhancement of the property during the marriage, these factors may sway the final division.

Personal Property

Personal property is categorized as any movable asset that is not permanently attached to land or a structure. This covers a vast range of items such as furniture, vehicles, jewelry, electronics, art collections, and even bank accounts. Unlike real property, which includes land and buildings, personal property is typically easier to divide since it can be physically separated or sold, allowing for the proceeds to be distributed between the parties involved.

However, the division of personal property can become contentious, especially if there are significant or high-value assets at stake, such as a collection of antiques or a luxury vehicle. In these cases, emotions can run high, leading to disputes that may require the assistance of a mediator or attorney to navigate.

Why Do You Need to Know the Difference?

Understanding how real property and personal property differ can greatly impact how your divorce proceedings unfold. By knowing what assets fall into each category, you can better prepare for negotiations and ensure that your rights are protected. Additionally, having a clear understanding of the laws and factors that may affect property division will help you make more informed decisions during this challenging time.

How a Lawyer Can Help You

Dividing property in a divorce can be complicated and emotionally draining, especially when it comes to determining the value and division of real property. This is where the help of a lawyer can be invaluable. A skilled divorce attorney will have experience navigating these issues and advocating for your best interests during negotiations or in court. They can also help you understand the laws specific to your state and how they may impact the division of your assets.

Take Steps to Protect Your Assets

In summary, distinguishing between real and personal property is more than a legal exercise—it’s a practical necessity. From navigating divorce settlements to buying your dream home, these concepts shape significant life decisions.

If you’re facing property-related challenges, particularly in the context of divorce, seeking legal advice is crucial. The Law Offices of Michael A. Robbins is well-versed in these matters, offering guidance and representation to ensure fair and just outcomes. Reach out to us today for support in protecting your assets and securing your future.