Divorcing During the Holidays in Michigan: Timing, Taxes and Year-End Money Decisions

The short answer: You can file for divorce in Michigan at any time of year, including over the holidays. But Michigan’s waiting period means a case filed this fall won’t be final until the end of the year at the earliest, so you’ll almost certainly still be married on December 31 for tax purposes. Until the judgment is entered, be careful with year-end bonuses, holiday spending and joint accounts. Courts can look closely at how marital money was used while the case was pending.

The holidays are hard on a marriage that is already struggling. Many people decide over Thanksgiving or Christmas that they are done, and January is one of the busiest months of the year for new divorce filings. If you’re weighing that decision now, the calendar matters more than you might think. Here’s what Michigan law and the tax rules mean for a divorce that spans the end of the year.

If you share children, see our holiday parenting-time guides for help with schedules, travel and exchanges. This article covers the timing and money side.

Should You File Before or After the Holidays?

There is no legal advantage to waiting until January, and no legal penalty for filing in December. The right timing depends on your family, your finances and your safety.

Michigan’s Waiting Periods

Under MCL 552.9f a judge cannot enter a divorce judgment until at least 60 days after the complaint is filed. If you have minor children, the waiting period is six months. A judge can shorten it in cases of unusual hardship or compelling necessity, but never to less than 60 days. Most cases take longer than the minimum, especially if property, support or custody is disputed.

In practice, that means:

• A case filed in October or November will not be final before the end of the year in most situations.
• A case with minor children filed this fall will typically run well into next spring or later.
• The date you file starts the clock. Waiting until January pushes everything back.

Reasons some people file before the holidays:

• To start the waiting period sooner
• To get temporary orders in place for support, the home or the children before the holidays
• When there are safety concerns. Never delay protecting yourself or your children for the sake of the calendar.

Reasons some people wait until after:

• To give children one more holiday season before the news
• To avoid serving papers on a spouse during a family gathering, which can inflame the whole case
• To use the time to gather financial records and meet with an attorney first

The December 31 Tax Rule

For federal taxes, your marital status on December 31 decides your filing status for the entire year. According to IRS Publication 504, if you are still married on the last day of the year, even if your divorce is filed and pending, you are treated as married for the whole year. If a final judgment of divorce is entered by December 31, you are treated as unmarried for the whole year.

If your divorce is still pending at year-end, your usual options are:

• Married filing jointly: This often produces the lowest combined tax. But both spouses are responsible for the entire tax bill, and you’ll need to agree on how to split any refund or balance due.
• Married filing separately: Each spouse reports their own income and is responsible only for their own return. This usually costs more in total tax, but it can make sense when trust is low or one spouse’s finances are uncertain.
• Head of household (in some cases): A married parent may qualify if they lived apart from their spouse for the last six months of the year, paid more than half the cost of keeping up the home, and had a qualifying child living with them for more than half the year. This status has better tax rates and a higher standard deduction than filing separately.

Who claims the children when divorcing during the holidays?

Under federal rules, the parent the children lived with for more nights during the year is generally the one who claims them. The other parent can claim the child tax credit only if the custodial parent signs IRS Form 8332. Your divorce judgment can address who claims the children in future years, so raise it with your attorney early.

What to do now: Before December 31, talk with both your divorce attorney and a tax professional. If you and your spouse can agree on how to file this year, put that agreement in writing. (This is general information, not tax advice. Your situation may be different.)

Year-End Bonuses, Stock Awards and Holiday Gifts

Michigan divides marital property “equitably,” meaning fairly but not always 50/50. In general, income and assets earned during the marriage are marital property, even if they are paid out after a divorce is filed.

Year-end bonuses: A bonus earned for work done during the marriage is often treated as marital, even if it arrives in December after you have filed. Courts look at what period the bonus was earned for, not just when it was paid.
Stock awards and RSUs: Shares that vest around year-end may be partly marital and partly separate, depending on when they were granted and what they reward. These often need a careful calculation.
Gifts between spouses: A holiday gift from one spouse to the other usually becomes part of the marital property analysis, especially an expensive one such as jewelry or a vehicle.
Gifts from family: Gifts given only to you by your own family may be separate property. That protection can be lost if the money is deposited into a joint account or spent on shared expenses.
Practical tip: Keep pay stubs, bonus letters and stock award statements, and don’t hide or redirect a bonus. Michigan judges take a dim view of concealed income, and it can cost you far more than the bonus was worth.

Holiday Spending and Joint Credit Cards

The holidays are expensive, and a pending divorce doesn’t stop the bills. Normal spending, like gifts for the kids, travel you would usually take and ordinary household costs, is generally fine. Spending that drains marital money for one spouse’s benefit is a different story.

Michigan courts can account for dissipation, the wasting or hiding of marital assets during a breakdown of the marriage. If a judge finds that one spouse wasted marital money, the court can adjust the property division to make up for it. Red flags include:

• Large or unusual purchases while the case is pending
• Running up joint credit cards
• Spending marital money on a new partner
• Moving money into accounts the other spouse can’t see
• Gambling losses

Joint credit cards are a special risk. A divorce judgment can assign a debt to your spouse, but it doesn’t change your contract with the credit card company. If your name is on the account and your spouse stops paying, the lender can still come after you. Consider these steps:

• Pull your free credit report at annualcreditreport.com to see every account in your name.
• Ask your attorney whether to freeze or close joint accounts, and how, so you don’t violate a court order or look like you are cutting your spouse off.
• Keep receipts for significant holiday purchases, especially for the children.

If temporary orders have been entered in your case, read them before you spend. Many orders limit selling, moving or borrowing against marital property while the case is pending.

Expect Court Delays Between Thanksgiving and New Year’s

Michigan courts close for the state holidays around Thanksgiving, Christmas and New Year’s, and many judges, referees and Friend of the Court staff take time off in late December. Hearings scheduled for those weeks are more likely to be moved, and new motions may not be heard until January.

If you need something decided before the holidays, such as temporary support, use of the house or a holiday parenting schedule, don’t wait until mid-December. File early, ideally by mid-November, so the court has time to schedule a hearing. Emergency (ex parte) relief is available when there’s a real risk of immediate harm, but judges reserve it for true emergencies.

Frequently Asked Questions

1. Can I get divorced before the end of the year if I file in November or December? Very unlikely. Michigan requires at least 60 days between filing and judgment, or six months if you have minor children. A case filed in November or December will almost always be finalized next year.
2. If my divorce is pending on December 31, can I file my taxes as single? No. If you’re still legally married on December 31, you file as married (jointly or separately) for that year, or possibly as head of household if you meet the IRS requirements.
3. Is my year-end bonus marital property if I’ve already filed for divorce? It may be. If the bonus was earned for work done during the marriage, a Michigan court will often treat it as marital property, even if it’s paid after filing.
4. Can my spouse run up our joint credit card during the divorce? They can still use it, but a judge can account for wasteful spending when dividing property. Talk to your attorney about protecting joint accounts and check your credit report.
5. Is it better to wait until after the holidays to file? There’s no legal advantage either way. Filing sooner starts the waiting period. Waiting can give your family a calmer holiday. Planning with an attorney now gives you the most options.

Talk to a Michigan Divorce Attorney Before the New Year

You don’t have to decide everything before the holidays, but a conversation with a lawyer now can save you money and stress later. The Mitten Law Firm helps families throughout Wayne and Monroe Counties plan their next steps, protect their finances and keep the focus on their children.

Call (734) 765-9382 or schedule your free consultation today.

 
  
 
 
 
 
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