Updated October 8, 2026. Quick answer: No. Michigan is a common law state. Its divorce statute lets the court award the parties “such parts as it shall deem just and reasonable” of the estate (MCL 552.19), and the surviving spouse has an elective share at death. The IRS lists nine community property states.
Michigan community property at a glance
| Item | What the documents say |
|---|---|
| Regime | Common law |
| At divorce | The court awards parts of the estate that it considers just and reasonable (MCL 552.19 and 552.23) |
| At a spouse’s death | The survivor may elect to take one-half of the intestate share, reduced by one-half of other property from the decedent (MCL 700.2202) |
| Federal basis at the first death | A qualified joint interest between spouses: one-half is included in the estate and steps up |
| Source | Michigan Legislature; IRS Publications 551 and 555; 26 U.S.C. 1014 |
What the Michigan statutes say
Michigan’s divorce sections do not use the words community property, marital property, equal or equitable. Section 552.23 lets the court award part of either party’s estate “as the court considers just and reasonable”.
At divorce in Michigan
The standard is discretionary: the court looks at the facts and awards what it considers just and reasonable, with no fixed percentage in the sections read.
At a spouse’s death in Michigan
MCL 700.2202 covers the surviving spouse “of a decedent who was domiciled in this state” who died with a will. The survivor may file a written election to “take 1/2 of the sum or share that would have passed” had the testator died intestate, reduced by one-half of the value of other property derived from the decedent.
What it does to basis when the first spouse dies
Because Michigan is not on the IRS’s list of community property states, a couple’s basis at the first death depends on title. IRS Publication 551 says to “Include one-half of the value of a qualified joint interest” in the decedent’s gross estate, and the survivor’s basis is the cost of the survivor’s own half plus the basis in the half inherited. Property in the decedent’s name alone is different: 26 U.S.C. 1014(a) gives the heir a basis equal to the property’s fair market value at the date of the decedent’s death.
Computed illustration, not tax advice: suppose a Michigan couple paid $100,000 for shares held as a qualified joint interest, and the shares are worth $400,000 when one spouse dies. The survivor’s basis is the total of two halves: $200,000 for the half that steps up plus $50,000 as the cost of the survivor’s own half, which makes $250,000. A sale at $400,000 would then show a gain of $150,000. In a community property state the same facts would give a basis of the whole $400,000. CMG’s common law step-up page goes through the difference.
What the documents do not say
- The documents read do not state a rule for a couple who moved to Michigan.
Common mistakes
- Searching Michigan law for an equal or equitable standard; the sections read use just and reasonable.
- Assuming the answer in this state settles it for a couple who move; the rules depend on the state where the spouses are domiciled and, for property in a trust, on the trust.
Related: community property states by state, why only half steps up in a common law state, Michigan retirement taxes, and Michigan probate cost.
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Answer againSources
- 552.19 Restoration of real and personal estate to parties (Michigan Compiled Laws, Revised Statutes of 1846): https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-552-19
- 552.23 Judgment of divorce or separate maintenance; further award of real and personal estate (Michigan Compiled Laws): https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-552-23
- 700.2202 Election of surviving spouse (Estates and Protected Individuals Code, Michigan Compiled Laws): https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-700-2202
- IRS Publication 551, Basis of Assets (December 2025): https://www.irs.gov/pub/irs-pdf/p551.pdf
- 26 U.S.C. 1014, Basis of property acquired from a decedent (United States Code, 2024 Edition): https://www.govinfo.gov/link/uscode/26/1014?link-type=html
Sources: the primary documents linked above, read on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.