Equines and the End of a Marriage: How Show Horses Are Handled in a Michigan Divorce

By Stewart C.W. Weiner

A stunning show horse is many things to its owners. It is a source of pride and a personal passion. It is a significant, time-consuming, and expensive commitment. And it may be one of the parties’ most unique and valuable assets. Unlike standard assets like bank accounts, household possessions, or vehicles, show horses carry both sentimental and economic value. So, when a prized show horse becomes entangled in a divorce, the horse’s disposition can raise a host of complicated financial, practical, and emotional issues. 

In Michigan, a show horse – no matter how valuable or meaningful to its owners it may be – is treated in divorce proceedings as personal property, as other pets like dogs and cats are. As such, it is subject to the same asset valuation and distribution principles that apply to other items of personal property. But the complexities of appraisal, the allocation of winnings, and the costs and arrangements involved in maintaining and showing a horse, including boarding, feed, attire, transportation, veterinary care, and training, can make the future of an equine asset a major point of contention in a divorce.

A Show Horse Is Subject to Equitable Distribution

A show horse’s status as personal property under Michigan law means that unless its owners can agree to the hows, whos, and whens of the animal’s future, a judge will ultimately decide its fate under similar principles of equitable distribution that apply to the division of other assets in a Michigan divorce. 

Two fundamental aspects of equitable distribution are important to understand in the context of a show horse. First, “equitable” is not the same as “equal.” Instead, Michigan judges consider many factors in determining how to distribute a couple’s assets fairly and equitably, which means a horse’s fate is considered together with how other marital assets are to be divided and distributed. 

Second, not all property is subject to equitable distribution. Under Michigan law, property and assets are placed into two distinct categories: “marital property” and “separate property.” Marital property consists of all assets acquired during their marriage regardless of the party who acquired the asset. Separate property is generally, but not always, the assets each spouse owned prior to the marriage. 

If one spouse brought the horse into the marriage, that spouse would likely claim possession of the horse when the parties divorce. But a horse acquired during the marriage would be subject to equitable distribution if the parties cannot agree on how to handle this very complicated issue.  

Determining Property Classification

The determination of whether a show horse will be considered marital or separate property isn’t always clear-cut and can hinge on several factors, including:

• Pre-Marital Ownership: If one spouse owned the show horse prior to the marriage and maintained it without financial contribution from the other spouse, the horse will likely be considered separate property.
• Acquisition During Marriage: Show horses purchased during the marriage with marital funds will typically be deemed marital property, subject to division.
• Commingling of Funds: If separate funds were used to acquire or maintain a show horse but became commingled with marital assets, the horse might be reclassified as marital property.
• Contribution of Each Spouse: The court may also consider whether both spouses contributed to the horse’s care, training, or competitive success, even if the horse was initially owned by one party.

Appraisal and Valuation of Show Horses

Once classified as marital property, a show horse’s future is inherently intertwined with the nature and value of all other marital property thrown into the equitable distribution mix. Accordingly, assessing the horse’s value is a key part of the process. Valuation is often a contentious issue because show horses are not only valuable but also unique. Their worth depends on factors such as pedigree, training, competitive success, and potential future earnings. To ensure accuracy, divorcing parties often rely on professional appraisers with expertise in equine valuation.

Disputes often arise when one spouse undervalues the horse to retain ownership or inflates the value to secure a greater share of other marital assets. Engaging a neutral appraiser or agreeing on a valuation expert in advance is often necessary to mitigate these conflicts.

Ownership, Custody, and Care

Even if there is agreement on the horse’s value, that does not answer the question of who will own the horse following the divorce, what are the future plans for the horse (i.e., showing, racing, or studding), and who will be responsible for its costly and complex ongoing care and maintenance. 

Michigan courts prioritize practical considerations when awarding ownership of a show horse and will consider several relevant factors, such as: 

• Which spouse has the knowledge and experience to care for and train the horse?
• Which spouse played a more significant role in the horse’s training, care, and competitive achievements?
• Which spouse provided the majority of the funds for the horse’s acquisition and maintenance?
• What is the emotional bond between the horse and its primary caregiver, especially if the horse’s well-being is at stake?
• Which spouse has the financial means and is otherwise better equipped to provide consistent care, including access to stables, trainers, and veterinary services?
• Are there other owners of the horse besides the divorcing spouses, and what is the other owners’ financial interest and commitment to the horse?

Possible Negotiated Resolutions

As with every aspect of divorce, it is almost always preferable for the spouses to reach a negotiated resolution about a show horse’s fate rather than leave it in the hands of a judge. Such a resolution can take many forms, including:

• One spouse buys out the other spouse’s interest in the horse, providing sole ownership of the horse to one of the parties.
• An agreement to share ownership and responsibilities, though this approach requires clear and specific agreements as to care, expenses, and the distribution of winnings or stud fees, as well as an ability and willingness to work collaboratively in the years ahead.
• Selling the horse and dividing the proceeds. 
• Awarding ownership or retaining an interest in the horse to one spouse in exchange for a larger share of other marital assets to compensate for the loss of the horse’s value.

Couples who have made a show horse a significant part of their married life and have forged emotional and financial connections with their equine investment may understandably have difficulty resolving its fate in a divorce. If you are facing such a prospect, an attorney experienced in handling these sensitive and complex matters can help you explore your options and ensure that you and the animal you love are treated fairly and equitably. 

If you have any questions regarding the treatment of show horses in a Michigan divorce, please contact Stewart Weiner at Maddin Hauser.