Division of Marital Property in Columbia
Separating from your spouse means dividing up the family’s assets and property, including everything from sentimental holiday decorations to substantial retirement investments. Understanding how the division of marital property in Maryland works can help you ensure a fair and equitable property distribution after your marriage ends.
What is Marital Property in Maryland?
Marital property is any property acquired by either party during the marriage, in one or both parties’ names. In Maryland, all marital property is subject to equitable division in divorce. That includes:
- Houses, rental properties, vacation properties and timeshares
- Cars, boats, and recreational vehicles
- Bank, investment, and brokerage accounts
- Personal property, collections, and firearms
- Shares in a family business
- Intellectual property rights
How Maryland Courts Handle the Division of Marital Property
Maryland is considered an “equitable distribution” state. This means, Maryland’s Marital Property Act doesn’t require divorce judges to divide property right down the middle. Instead, they can distribute the parties’ assets in a way that is fair under all the circumstances. However, in practice, this often still results in an approximately equal division of property. Maryland property division laws direct judges to:
- Determine whether property is marital, non-marital, or family use personal property;
- Assess the value of the property
- Apply “fairness principles” to the division of property
Non-Marital Property
Property may be marital or separate. Non-marital property (also called separate property) must fit into one of the following non-marital categories:
- Property acquired prior to the marriage (for example, retirement benefits from an earlier job)
- Gifts or inheritance (even if received during the marriage)
- Excluded by a valid prenuptial agreement, post-nuptial agreement or other contract
- Property directly traceable to any of the above (for example, a car purchased and maintained using inherited funds)
Property may also be partly marital and partly separate. For example, if one party purchased a house before the marriage, but then the family used marital funds to pay the mortgage during the marriage, the non-owner spouse may be entitled to an equitable share of the increased net value of the property.
Treatment of Marital Debts in Maryland
In Maryland, a divorce court generally cannot transfer the title of property from one party to the other, or allocate debts to someone who is not a party to the lending contract. That means that each party will keep any debts in his or her name only, even if they were incurred for the benefit of the family. Often, the party whose name is on the mortgage or car loan will be awarded the related property as well. A Court can consider how debts are allocated between parties in making a determination about equitable division of marital property, as well as the allocation of a monetary award, if any. Monetary awards from marital property are designed to offset family-related debts or titled property values held solely in one party’s name that cannot otherwise be divided. For example, you can’t divide a car.