Attorney
When going through a divorce in Maryland, the process of dividing property can be complicated. You might be wondering how your assets and debts will be divided and what factors will be considered. In Maryland, property division is guided by the principle of equitable distribution, aiming for fairness rather than a strict 50/50 split. This involves considering both marital and non-marital property and balancing various factors to achieve a fair result. This article takes a closer look at how marital and non-marital property are defined and the factors the court considers to ensure a fair outcome.
Understanding Equitable Distribution
Equitable distribution in Maryland means that property and debts acquired during your marriage are divided fairly but not necessarily equally when you divorce. Unlike a 50/50 split, equitable distribution considers various factors to ensure a fair division that reflects each spouse’s contribution and needs. It’s important to understand that “equitable” doesn’t mean equal; it means what’s fair based on the unique circumstances of your situation. This approach aims to reach a balance that respects both partners’ contributions and future well-being.
Marital vs. Non-Marital Property
In Maryland, it’s essential to distinguish marital property from non-marital property during a divorce. Marital property includes assets and debts acquired by either spouse during the marriage, no matter whose name is on the title. This category often covers the family home, joint bank accounts, retirement benefits, and shared debts. The law assumes that both spouses contributed to these assets in some way, so they are subject to fair division.
Non-marital property, by contrast, belongs solely to one spouse. Examples include inheritances, gifts meant for one spouse, and assets owned before the marriage. These remain with the original owner unless mixed with marital property, such as depositing inheritance money into a shared account. When this happens, distinguishing between the two becomes more complicated. Knowing these definitions clarifies which assets can be divided and which remain separate.
Factors Considered in Property Division
When dividing property during a Maryland divorce, the court considers various factors to ensure a fair and equitable outcome. The main factors considered include:
- Length of the Marriage: Longer marriages often result in more significant financial entanglement, impacting how property is divided.
- Contributions of Each Spouse: This includes both financial contributions, like income and investments, and non-financial contributions, such as homemaking and raising children. The court recognizes that non-monetary contributions are equally important.
- Economic Circumstances: The court assesses what would be fair in the division of property by examining each spouse’s financial situation, including their earning potential, employment status, and future financial prospects.
- Age and Health: Each spouse’s physical and mental health can affect their financial needs and ability to work, which is considered in the property division.
- Premarital Agreements: Any agreements made before marriage that dictate how assets should be divided are considered.
- Contributions to the Well-being of the Family: This includes maintaining the household, supporting the spouse’s career, and overall family care.
- Debts and Liabilities: The court examines the assets and debts each spouse has incurred, aiming to distribute these equitably.
The Role of a Marital Settlement Agreement
A marital settlement agreement plays a vital role in a Maryland divorce, enabling both spouses to amicably divide their assets and debts. This agreement lets you and your spouse negotiate property division terms tailored to your specific needs and priorities, avoiding reliance on the court’s decision. By clearly defining how property will be divided, the agreement minimizes misunderstandings, prevents future disputes, and promotes a smoother transition as both parties move forward.
Contact an Experienced Maryland Divorce Attorney
Randall J. Borden understands the complexities of property division in a Maryland divorce. We will work diligently to protect your interests and achieve a fair outcome. Contact us today for a consultation to discuss your specific situation and explore your options.