Divorces can be expensive, especially when one spouse has to
conduct extensive discovery, or in other words, send the other spouse numerous
requests for information about their income and assets. While some spouses do openly share this type
of information, some do not, and that lack of sharing of information can be one
of the leading causes of higher attorney fees.
The
Michigan Supreme Court, however, has recently revised three Michigan Court
Rules in order to streamline and simplify the exchange of financial information
in divorces. Effective January 1, 2020,
divorcing spouses must now automatically provide full financial disclosures under
oath of their employment, income, assets and debts. They are also limited in the type of
discovery they can use, and discovery use or abuse can be a basis for a request
for attorney fees.
First,
MCR 3.206(C) was revised to include a provision that within 28 days of the
filing of the Answer to the Complaint for Divorce, divorcing spouses must fill
out and exchange a Domestic Relations
Verified Financial Information Form.
Here is the form: https://courts.michigan.gov/Administration/SCAO/Forms/courtforms/cc320.pdf.
This form requires full disclosures of employment, income,
assets, and debts. It must be signed
under oath in the presence of a notary.
The form also requires that documentation be attached: recent paystubs and tax returns, and recent
statements for credit card or loan accounts.
Second,
MCR 3.201(C) was revised to include a limitation on formal discovery in the
form of interrogatories. Interrogatories
are a type of discovery in which formal written questions are submitted to the
other spouse. While one used to be able
to send as many interrogatories as desired (within reason), divorcing couples
are now limited to 35 interrogatories.
Third,
MCR 3.206(D) was revised to allow for a request and award for attorney fees for
spouses who lack the ability to pay for appropriate discovery, and for spouses
who are on the receiving end of discovery conducted in violation of the
Michigan Court Rules.
The
revisions to the discovery process should help move cases along more quickly as
the exchange of financial information is required early in the case. It should also help to conserve costs within
the divorce, particularly as those costs are usually paid out of the joint
marital estate. It should also help
clarify the grounds for the basis of attorney fee requests. Divorce is a stressful process, and these not
so minor court rule revisions should help alleviate some of that stress.
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