Maryland Property Division | MD Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, everything from the marriage has to be sorted out by the courts. Legally speaking, the courts have to transform 1 household into 2. Maryland property division is one major task the courts must perform in order to finalize a divorce.

A divorcing spouse should retain the guidance of a licensed Family Law attorney in his/her state. Each divorce is different and may be more complicated than you think. Lawyers have the proper training and experience to tell the judge what a divorcing spouse wants and/or needs from the property division.

Property Division Divorce Laws in Maryland

The purpose of Maryland property division laws is to make sure that marital property is allocated to each spouse equitably, but not necessarily in a 50-50 split. Maryland marital property is divided under the considerations of Maryland Family Law Code §8-205(b) but the trial court judge receives great discretion when converting Maryland marital property into separate Maryland divorce property.

Maryland is an equitable distribution state. This means that with regard to Maryland divorce assets, anything the spouses brought into a marriage usually will not be included in Maryland divorce assets or Maryland divorce property. The only property that comes into the court's distribution is that which is legally classified as property of the marriage subject to Maryland Family Law Code §8-205.

In addition, the court may not change title to or interest in property outside the scope of §8-205(A)(2). However, the ownership of non-marital property will affect any property division award under Maryland law.

What is considered Marital and Non-Marital Property?

Maryland Family Law Code §8-201(e)(1) defines marital property as “the property, however titled, acquired by 1 or both parties during the marriage”.

Non-marital property is listed under Maryland Family Law Code §8-201(e)(3) as the following exemptions to marital property:

Property acquired before the marriage
Property acquired by inheritance or gift from a third party
Property excluded by valid agreement
Property directly traceable to any of these sources

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property. This process is outline in Maryland case law.

Under §8-205(b), the court considers a number of factors in dividing assets and debt. Some of these are:

The parties' contribution to the marriage
The parties' marital misconduct
Any alimony awards given to a party
The parties' economic circumstances
The value of each party's property interests

Though these factors only arise when a monetary award is being calculated, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award the money equitably to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided by each spouse's contribution or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the court's discretion.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 30 of those years. The ex-spouse may be awarded the entire cash amount or receive a portion of the benefits acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values as determined by the court. May be sold or given to a spouse outright.
- Example 1: A motorcycle is owned by a spouse. The motorcycle may be sold with the proceeds to be given to a poorer spouse or given outright to one of the spouses.
- Example 2: A truck has a shared title. The truck may be sold with the proceeds going to each spouse equally or given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award a cash payment to the ill spouse to purchase alternate coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. If marital income was used to make payments on the insurance, the spouse may be entitled to a portion of the benefits.

Settling Disputes in a Divorce Case with Property and Asset Division

Since Maryland courts do not transfer title to property but give monetary awards, the parties can not seek the transfer of property from one spouse to the other. Failure to pay a monetary award also may not be enforced by contempt of court under Maryland case law.

Generally, the trial court's determinations will not be changed by an appellate court unless there is clear evidence of abuse of discretion. This is extremely hard to prove.

Help From a Maryland Property Divorce Lawyer

Retaining a Maryland property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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