Everything You Need to Know About Property Division in a Maryland Divorce

September 30, 2024
The Law Offices of Brandon Bernstein, LLC

More than a decade ago, you said your “I do’s” and dreamed of a beautiful life together, with all of the material things that affluent adults buy. Luxury cars, a beachside vacation condo, a motorboat, jewelry, Persian rugs, and fantastic furniture. You managed to save a fair amount of money in your IRA, retirement accounts, and investment portfolio. And your marriage was good–until it wasn’t. And now you’re filing for divorce and parting ways. But what about all of your property? How is property divided when the spouses are going through a divorce? 

Unless you have a prenuptial or postnuptial agreement, in Maryland, divorcing spouses must divide their marital property according to the principles of “equitable distribution.” This concept only applies to your marital assets and not assets that are yours. In addition to dividing marital assets, divorcing spouses must also divide their marital debts. This can cause some issues, particularly when a debt is not in the name of both spouses, so it’s best to contact a Bethesda property division lawyer as soon as possible to discuss your legal options.

What Are Marital Assets?

Marital assets are those that were acquired during the marriage. In most cases, this includes real estate, which is the most valuable asset most couples own. Each spouse’s separate property may include gifts, inheritances, and property brought into the marriage. However, as these issues are often complex, it’s important to contact a Bethesda property division attorney to help you evaluate the nature of your assets as marital or separate. 

In the absence of a prenuptial agreement, all marital assets can be considered as part of the discussion and potential distribution, including:

  • Real property
  • Cars and other vehicles
  • Boats
  • Bank accounts
  • Investment accounts
  • Retirement accounts
  • CDs
  • Jewelry
  • Precious metals
  • Rugs
  • Furniture
  • Artwork
  • Privately held business interest

This is not an exclusive list, and depending on your personal situation, it may include other items. 

As noted above, Maryland requires an “equitable distribution” of these assets. This does not mean that assets are split 50/50. But it does mean that the property division must be fair and equitable. If possible, it’s best to work with your spouse to determine how to divide your marital assets to avoid the court stepping in to make a decision. 

If you and your ex-spouse cannot agree on how to divide your property, the court will determine which property is marital and how much that property is worth. Under the Maryland Marital Property Act, the court can consider the monetary and non-monetary contributions of each spouse to the marriage. Non-monetary contributions can include childcare, meal preparation, maintaining the home, and similar types of contributions. 

Family Use Personal Property

In addition to the concept of marital property, Maryland also has a category of property that is known as “family use personal property.” Family use personal property includes the family home, car, furniture, appliances, etc. Maryland courts have the authority to award exclusive use and possession of these assets to the spouse who has custody of the minor children. The underlying purpose is to allow children to live in an environment that is familiar to them. Such an award can last for up to three years from the date of the decree.

The court must take into account the following factors in making this award:

  • The best interests of any minor children;
  • The respective interest of each spouse in continuing to use the family use personal property or occupy or use the family home or any portion of it as a dwelling place;
  • The respective interest of each spouse in continuing to use the family home or part of it for the production of income; and
  • Any hardship imposed on the spouse who is not awarded the family use personal property. 

What the Court Can (and Cannot) Do with Your Property  

It is important to note that the court has a considerable amount of authority to make property division decisions if you and your spouse cannot reach an agreement on your own. Below is what the court can and cannot do with your property:

  • The court can order you to sell a property that you jointly own with your spouse and divide the proceeds equitably.
  • The court can order one spouse to transfer ownership of a property to the other spouse, but it cannot transfer title.
  • The court cannot transfer debt from one person to another. For example, if you took out a boat loan in your name only, the court cannot make the other person make those boat payments.  
  • The court also may transfer interest in a pension or ownership of personal property from one spouse to the other. 

How Long Does Property Division Take in a Maryland Divorce?

If there is a substantial amount of property to be divided and it’s difficult to evaluate the property’s value, property division decisions can take many months. If the parties do not cooperate with each other, this can extend the time that property division takes. However, if the parties do not own a great deal of valuable real and personal property, and they are working together in a cooperative manner, property division will take much less time. Simply stated, it’s up to the spouses how long the process will take. 

Contact a Bethesda Property Division Lawyer Today

Divorce is difficult. In many cases, spouses will be emotionally attached to some of their property, which makes equitable distribution decisions very difficult. At the Law Offices of Brandon Bernstein, we have helped many couples through this difficult phase of their divorce proceedings.  If you would like to learn more about how Maryland’s equitable distribution principles will impact property division in your divorce, schedule a free consultation with Bethesda property division lawyer Brandon Bernstein at 240-395-1418 or contact us online today.

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