The first couple were on the brink of separation in 2000, according to a new biography of President Barack Obama.
Driven to serious debt after a crushing defeat against incumbent Bobby Rush for a Chicago House of Representatives seat, Michelle said that enough was enough for their relationship.
Edward Klein's book The Amateur: Barack Obama In The White House, said that Michelle was in no mood for sympathy in the dark days that followed defeat as she had warned Obama not to take on Rush.
Klein claims his book is based on nearly 200 interviews and said that Obama confided to friends that they were talking about divorce.
"Michelle actually had divorce papers drawn up," Klein writes, citing one of her friends.
Obama was under pressure to balance the household books before he even considered running for senate, the book claims.
However, the White House has dismissed this latest book as a work of outright fiction.