In Maryland "Marital Property" means the property, however titled, acquired by one or both parties during the marriage. This includes income earned, savings set aside, and retirement and/or pension rights accrued during the marriage by either spouse. It also includes any interest in real property held by the parties as tenants by the entirety unless the real property is excluded by valid agreement.
In Maryland "Marital Property" does NOT include property:
- Acquired before the marriage
- Acquired by inheritance or gift from a third party
- Excluded by valid agreement
- Directly traceable to any of these sources
The Court has the authority to grant "use and possession" of the family home and/or family use personal property for up to three years after the date a court grants an annulment, limited divorce, or absolute divorce. The purpose of this is to allow the child or children of the family continuity in a familiar environment, or to provide residence for someone with custody of that child. During this time, the Court might order either or both parties to pay all or part of the costs associated with the home.
When the courts are considering the division or distribution of marital property in a divorce, in Maryland, they consider a number of factors including:
- Monetary and Nonmonetary Contributions
- Value of the Property and the Economic Circumstances
- Circumstances Contributing to Estrangement
- Age and Physical and Mental Condition of the Parties
- How and When Specific Marital Property was Obtained, Including Contribution by Either Party in Tenants by the Entireties Real Estate
- Award of Alimony
- Other Factors, including Potential Tax Consequences
The Marital Property Act in Maryland does not require an equal division of marital property, but rather requires "an equitable distribution." The Maryland Courts can order a transfer of ownership of an interest in a pension, retirement, profit-sharing, or deferred compensation plan from one party to either or both parties. It can order a transfer of title of real or other personal property. The purpose of a "Monetary Award" is to counterbalance any unfairness that may result from the actual distribution of property acquired during the marriage strictly in accordance with its title. It is intended to compensate a spouse who holds title to less than an equitable portion of property. The Monetary Award from one person to the other cannot exceed the amount of marital property owned by the party who must pay.
In Maryland, unless you get an Agreement specifying another date, the end-date for determining the value of property is the Date of Absolute Divorce -- NOT the Date of Separation or the Date of Limited Divorce.
It is highly advisable to have expert legal guidance when considering the issue of distribution of marital property in a divorce. Please call my law office at 443-895-1688 to schedule a consultation today.