Maryland Divorce Laws: Protecting Your Assets

Baltimore MD

16 October, 2020

2:23 PM

Description

One of the most important distinctions under Maryland divorce law is that the state is not a community property state, but rather an equitable distribution state. This essentially means that courts are not required to split marital property straight down the middle, but rather, they can determine that one spouse is entitled to certain assets from their marriage. Some of the factors a court will generally consider include the age of each spouse, how long the marriage lasted, the reason for the divorce, how much money each spouse makes, childcare responsibilities, and the emotional and financial contribution each spouse made to the family. Because there is so much room for interpretation, you must make strong arguments to protect your assets and understand the key factors and situations that might come up throughout your divorce. From understanding what constitutes marital property to being vigilant about your soon-to-be former spouse’s expenses, understanding these terms will be crucial to ensure your assets are fairly divided. What Is Considered Marital Property? Marital property is considered to be any property, assets, or debt acquired by both parties throughout the marriage. If the assets belonged to one spouse before the marriage, these assets would not be considered marital property. Marital property can include real estate - such as a shared marital home or investment properties - bank accounts, retirement accounts, jewelry, credit card debt, art and collectibles, and more. Generally, all property acquired during a marriage will be considered marital property unless one of two exceptions applies: Either there is a valid written agreement that expressly states that the property belongs to one spouse and not the other, or the property in question was acquired through a gift or inheritance. For example, if a wife’s diamond necklace were an inheritance from an aunt, that would not be considered marital property and she would be entitled to exclude those assets from the equitable distribution of property. How Maryland law defines ‘acquired’ also warrants examination. For the purposes of a divorce proceeding, the term acquired is defined as the ongoing process of making payments on the property. Whether the property will be considered marital property will be determined by the source of each payment. If it can be shown that both spouses are making contributions to those monthly payments, then the property is marital property. The most common example would be in the case of a marital home. If one spouse owned a home that then became the shared marital home, and the other spouse began contributing to the mortgage payment, that property would pass from being nonmarital property to marital property. Understanding Your Rights If Your Spouse is Wasteful with Marital Property Maryland courts will penalize a spouse who is engaging in lavish or unnecessary spending of marital assets, particularly if they are doing so for a reason unrelated to the marriage at the time. For example, if one spouse used marital funds to take an expensive vacation with a girlfriend or boyfriend, the court may deem that the other spouse is entitled to be reimbursed for those funds in a monetary award. The purpose is to deter either spouse from unnecessary spending while a divorce is still pending. Getting divorced is an emotional process that requires mental strength so you can argue for what you deserve. Be sure to stay aware of the circumstances that could significantly impact your holdings throughout this difficult affair.