Short answer. Yes. You don't need to physically serve someone with process if they can't be found. You get a court order to serve by publication.
Originally Posted by Michigan Court Rules
(I) Discretion of the Court.
(1) On a showing that service of process cannot reasonably be made as provided by this rule, the court may by order permit service of process to be made in any other manner reasonably calculated to give the defendant actual notice of the proceedings and an opportunity to be heard.
(2) A request for an order under the rule must be made in a verified motion dated not more than 14 days before it is filed. The motion must set forth sufficient facts to show that process cannot be served under this rule and must state the defendant's address or last known address, or that no address of the defendant is known. If the name or present address of the defendant is unknown, the moving party must set forth facts showing diligent inquiry to ascertain it. A hearing on the motion is not required unless the court so directs.
(3) Service of process may not be made under this subrule before entry of the court's order permitting it.
We've done a couple of threads on this issue. There are some problems if the court lacks personal jurisdiction over the defendant. For example the court cannot divide marital property or award support. E.g., http://www.divorcesource.com/researc.../99mar30.shtml
But inability to personally serve is not the same as lack of personal jurisdiction.