Marital Property

In Maryland "Marital Property" means any property acquired during the marriage by one or both spouses. These assets include real estate, savings, retirement and pension which was acquired by either spouse during the marriage. This does not mean that the property is divided 50/50. Maryland is an "equitable distribution" state, meaning the property is divided in a fair and equitable fashion. It is to the benefit and both parties are encouraged to reach a settlement on their own or the court will determine the outcome and often appoint a trustee. This will significantly reduce the amount of the property as the trustee will generally receive a percentage of the sale of the property.

Title of a property does not necessarily mean that the title spouse will receive that property. The Court has the ability to divide equitably and fairly the property interests of spouses giving consideration to a number of factors which will determine the award. This means that the court may order the titled party to make a monetary payment or perhaps transfer ownership to the receiving party in order to satisfy the fair and equitable law.

There are numerous factors the Judge may look at when trying to decide the amount of the monetary award. Some of the factors include but are not limited to:

• Monetary and non-monetary contributions of both parties during the marriage, this means that perhaps a property is titled in the name of one of the parties, but the other party maintained and made possible the ownership of the property
• The manner in which property was acquired and which party made significant contributions to the property
• The age, physical and mental condition of the parties, granting of alimony, possession of the house and custody of any children. Economic circumstances of both parties and any other circumstances the Court thinks may apply to the decision

The Court can not transfer ownership of property, with the exception of pensions, from one spouse to the other. A three step process must first be taken before granting of any monetary award.

• The Court must first categorize the property owned by the parties as marital or non-marital
• The value of ALL marital property at the time of the divorce, NOT the separation
• The Court can then award the payment of a monetary award based on inequity of how the assets are titled.

Maryland recognizes the importance of non-monetary contributions of a spouse and takes it into consideration when making a decision as to property division. A spouse who's contribution has not included a financial contribution, cannot be said to have contributed nothing to the marriage. The legislature has maintained that non-monetary contributions made by spouse may be equivalent to monetary contribution of the other spouse.
Marital property does not include property

• Acquired before the marriage
• Acquired by inheritance or gift from a third party
• Excluded by valid agreement or
• Directly traceable to any of these sources

In the state of Maryland the Court has the right to grant "use and possession" of the family home and /or family use personal property for up to three years after the date of the final decree of divorce under these circumstances:

• To enable any child of the family to continue to live in the environment and community that are familiar to the child; and
• To provide for the continued occupancy of the family home and possession and use of the family personal property by a party with custody of a child who has a need to live in that home.

When the court grants a "use and possession" order, the Court has the right to order either party or both parties to pay all or any part of:

• Any mortgage payments or rent
• Any indebtedness that is related to the property
• The cost of maintenance, insurance, assessments and taxes; or
• any similar expenses in connection with the property

The end date for determining the value of the property is the date of the Absolute Divorce, not the date of Separation or date of Limited Divorce. Therefore, both parties, unless you have agreed otherwise, accrue rights to the other's Retirement through the date of Absolute Divorce. As stated above, it is generally to both parties benefit to agree to property distribution before going to court. This can be a costly, emotional and on going situation which with the help of a legal team experienced with Maryland Divorce law will help you to make the best decisions regarding your divorce.

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