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One of the things which makes divorce difficult is the processes that must be completed in order to complete the divorce. For instance, if there are children involved, the parties have to develop a workable child custody arrangement. This can be a long and arduous procedure. Another thing that can complicate a divorce is property division.In this post, we will provide a discussion on the basic facts of property division in Maryland. For instance, Maryland is an “equitable distribution” state. This informs how Maryland courts divide marital property in the event of a divorce. For this article, we will discuss property division from a default position of divorce without a prenuptial agreement.
Equitable Distribution State vs. Community Property State
Maryland is an equitable distribution state, rather than a community property state, when it comes to marital property division. What this means is that Maryland courts will divide marital property in such a way that both parties are treated fairly. The term “fair” is critical in this context, because fair doesn’t always mean equal. This distinguishes Maryland from other states which have community property laws. In community property states, there is a presumption that marital property will be divided equally between the parties. This is true even if an equal division is not really fair considering the circumstances of the marriage. In Maryland, a common property division outcome might be for one spouse to receive 65% of the marital property, while the other receives 35%. In a community property state, this would rarely happen.
Property Division - What Qualifies as Marital Property
A big question comes up: How is “marital property” defined? In Maryland, personal property acquired during the marriage is considered marital property. So, if one spouse purchases an automobile during the marriage, that automobile is considered jointly owned as marital property. With real estate, if the property is held as tenants by the entirety, the property will be considered marital property. Real property will also be regarded as marital property if it is acquired during the marriage.Real estate can often be complicated. For example, one spouse might acquire a house or land before the marriage. However, following the marriage, he or she may then receive contributions from the other spouse. The effect of this is that the real property will be considered “partial marital property”. This type of situation will be reflected in property division analyses. So, if one spouse bought a house prior to marriage, and the other spouse contributes to the mortgage after marriage, the house will be considered partial marital property.
Maryland Courts Don’t Use a Fixed Formula
As mentioned, Maryland courts will examine a couple’s situation and then determine an equitable distribution of property. This equitable distribution is frequently an unequal distribution. When making this distribution, courts don’t use any sort of fixed formula or metric. But, instead, will conduct a case-by-case analysis and look for different factors. A few of the factors which are known to hold weight in this analysis are as follows:
- the length of the marriage;
- when certain things were acquired;
- the comparative contributions of both spouses to the marriage;
- the current economic situation of each spouse;
- a separate alimony award to one spouse; and,
- a separate award of the family home to one spouse.
The key thing to remember is each case is unique, and Maryland courts will treat each case as such.
Contact The Murphy Law Firm for More Information
There is plenty more to know on this topic. We may come back and discuss this matter in more detail in the future. For now, contact The Murphy Law Firm for additional information by calling 240-493-9116.
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