Division Of Marital Property In Maryland

When a couple decides to divorce, one of the most complex issues they often face is how to divide their property. Maryland, like many other states, has specific laws governing the division of marital property, and understanding these laws is crucial for individuals going through a divorce. In this article, we’ll explore how marital property is defined, how it’s divided, and what factors come into play during the process in Maryland.

What Is Marital Property?

In Maryland, marital property refers to any property acquired during the marriage, regardless of who holds the title. This can include real estate, vehicles, retirement accounts, and personal property. Property acquired during the course of the marriage is considered marital property even if it is only titled in the name of one spouse. There are a few limited exceptions to what constitutes “marital property,” including property that was acquired as a gift or inheritance. 

How Is Marital Property Divided?

Maryland follows an equitable distribution system when dividing marital property. This means that property will not necessarily be divided 50/50 but rather in a way that is deemed “fair” based on a variety of factors. The Court considers a number of different factors in determining equitable distribution, including the following:

1. The contributions of each spouse: This includes not only financial contributions but also non-financial contributions, such as homemaking and raising children. Both types of contributions are valued when determining the fair division of property.
2. The length of the marriage: The amount of time that the parties were married and the change in their financial circumstances throughout the marriage will be considered.
3. The economic circumstances of each spouse: If one spouse is in a significantly worse financial situation than the other, the court may adjust the division of property to ensure fairness. This can include factors such as earning potential, age, health, and the ability to support themselves after the divorce.
4. The value of property: The court will consider the value of all marital property, which may involve appraisals of real estate, businesses, or personal property. In some cases, spouses may agree on a value or the Court may appoint an expert.
5. The debts of the parties: Marital debt, like credit card balances or mortgages, will be divided in a similar way to marital assets. The court will consider who is best able to pay these debts and how they should be allocated between the spouses.
6. Any prior agreements: If there is a prenuptial or postnuptial agreement in place, it may impact the division of property. Maryland courts will generally enforce these agreements, as long as they were entered into voluntarily and with full disclosure.

While Maryland law does not mandate an equal 50/50 split of marital property, the court seeks to achieve an equitable distribution, which means a fair and just division. This does not necessarily mean an equal division, but rather one that takes into account the specific circumstances of each case. Oftentimes, divorcing couples in Maryland are able to reach a property settlement agreement on their own, which is then submitted to the Court for approval.

If the spouses cannot agree on how to divide their property, the Court will intervene and make a determination based on the factors outlined above. The Court has significant discretion in deciding what constitutes an equitable distribution. Many times, divorcing couples prefer to reach a Marital Settlement Agreement to determine on their own terms what constitutes an equitable division of property. If they cannot reach such an agreement, the Court will make its own determination as to the division of marital property.

It is extremely important that you have a knowledgeable and experienced attorney in your corner as you go through the divorce process. Robert Greenberg, Esq. and the Greenberg Legal Group represents clients in divorce matters and issues regarding the division of marital property. Our firm is located in Annapolis, Maryland and practices in Courts throughout the State of Maryland. Please contact our office at (410) 650-4242 for further assistance.