Can I stay in my home in a Maryland Divorce? 

Divorce is a complex process, and for many couples, the marital home represents not just an asset, but a lifetime of memories. When a marriage ends in Maryland, a common question arises: who gets to keep the house? The answer isn't always straightforward, especially if there's no agreement in place outlining the division of real property. Maryland operates under the principle of equitable distribution, which aims for a fair, but not necessarily equal, division of marital property.

Marital vs. Non-Marital Property: The First Step

Before any division can occur, the court must first classify all assets as either marital or non-marital property.

• Marital Property: Generally, this includes all property acquired by either spouse during the marriage, regardless of whose name is on the title. This can encompass real estate, bank accounts, investments, retirement funds, vehicles, and even personal belongings. Even if one spouse acquired an asset individually during the marriage, it is typically considered marital property.

• Non-Marital (Separate) Property: This category includes assets acquired by a spouse before the marriage, or property received during the marriage as a gift or inheritance from a third party. Property specifically excluded by a valid prenuptial or postnuptial agreement also falls under this umbrella. It's important to note that non-marital property can sometimes become "commingled" with marital property, potentially converting it into a marital asset. For example, if pre-marital funds are used to pay down a mortgage on the marital home, the home may become part marital and part non-marital.

The Principle of Equitable Distribution in Maryland

Unlike "community property" states where assets are typically split 50/50, Maryland's equitable distribution approach means the court will divide marital property in a way it deems "fair" based on a comprehensive set of factors. This "fair" division might not be an even 50/50 split.

Factors Influencing the Division of the Marital Home

When determining how to divide the marital home (and other assets) without an agreement, Maryland courts consider various factors to ensure a fair division of the property. These factors often include:

• Length of the Marriage: The duration of the marriage can significantly impact how assets are divided.

• Contributions to the Marriage: This includes both monetary contributions (income, investments) and non-monetary contributions (homemaking, childcare, supporting a spouse's career).

• Economic Circumstances of Each Spouse: The court will look at each party's current financial situation and their ability to support themselves post-divorce.

• Age and Health of Each Party: These factors can influence future earning potential and financial needs.

• Circumstances Leading to the Divorce: While Maryland is a "no-fault" divorce state, marital misconduct (like dissipation of marital assets due to an affair) can sometimes be considered if it directly impacts the couple's finances.

• How and When Specific Marital Property was Acquired: This includes the efforts each party expended to accumulate the property.

• Any Alimony Award: If alimony is awarded, it can influence how other marital property is divided.

• Family Use Personal Property: If there are minor children, the court may grant one spouse exclusive use and possession of the family home and other "family use personal property" (like a car or furniture) for a period, typically up to three years, to provide stability for the children.

• Value of All Property Interests: The court will assess the value of all marital and non-marital property belonging to each spouse.

• Any Other Factor Deemed Necessary or Appropriate: The court has broad discretion to consider any other factor that leads to a fair monetary award or property transfer.

Possible Outcomes for the Marital Home

If spouses cannot agree on the division of the marital home, the court has several options:

• Sale of the Home and Division of Proceeds: This is a common outcome, especially if neither spouse can afford to maintain the home independently or if both prefer a clean financial break. The proceeds are used to pay off the mortgage, and the remaining equity is divided equitably.

• One Spouse Buys Out the Other: If one spouse wishes to keep the home, they may be required to "buy out" the other spouse's share of the equity. This often involves refinancing the mortgage to remove the other spouse's name from the loan.

• Exclusive Use and Possession (for minor children): As mentioned, if there are minor children, the court may grant the one parent exclusive use of the family home for a limited period, even if the other spouse retains an ownership interest or is still obligated on the mortgage.

• Monetary Award: The court cannot directly transfer property titled solely in one spouse's name to the other. Instead, if one spouse receives a greater share of the marital property (e.g., they keep the house), the court may order them to pay a "monetary award" to the other spouse to balance the equitable distribution.

The Role of Agreements

A prenuptial (before marriage) or postnuptial (during marriage) agreement can significantly simplify the process of property division, including the marital home, in a divorce. These agreements allow couples to pre-determine how assets and debts will be divided, potentially avoiding lengthy and costly court battles. Maryland courts generally enforce valid prenuptial and postnuptial agreements, provided they were entered into voluntarily, with full financial disclosure, and are not unconscionably unfair.

Seeking Legal Guidance

Navigating property division in a Maryland divorce, particularly concerning the marital home, can be incredibly complex. The equitable distribution system is designed to be fair, but "fair" is subjective and depends heavily on the specific circumstances of each case. If you are facing divorce and have questions about your marital home or other assets, consulting with an experienced Maryland divorce attorney is crucial to protect your rights and understand your potential outcomes. 

 Contact the Law office of Jerry Williams III at (410) 415-3617 today for a confidential consultation. Our Maryland divorce attorneys are dedicated to helping you protect your assets, and can help you identify marital and non-marital property, value assets, negotiate a fair division of property, and advocate for your best interest in court if an agreement cannot be reached. 

Blogs published by Law office of Jerry Williams III, LLC are for informational purposes only and are not considered legal advice. The contents of this blog does not create an attorney/client relationship, and readers are encouraged to consult their own legal counsel for legal advice.