by What are Considered Marital Contributions in Maryland?
One of the factors judges use to divide marital property is marital contribution.
In essence, the marital contribution is each party’s value to the marriage. Contributions can be monetary. However, they can also be non-monetary.
Based on this definition, both full-time, part-time, and stay-at-home spouses offer marital contributions that the court will consider.
It’s possible for the court to determine that non-monetary contribution is grounds to award a greater percentage of the marital property.
In a Maryland divorce case, marital contributions can include:
- Monetary Contributions: This involves each spouse’s financial contributions to the marriage, such as income earned from employment, investments, or other sources.
- Non-Monetary Contributions: These contributions are non-financial in nature and can include homemaking, child-rearing, caring for family members, managing household responsibilities, and other forms of support provided within the marriage.
- Contributions to Assets: This refers to efforts made by either spouse to acquire, improve, or maintain marital assets, such as real estate, businesses, or other valuable possessions.
- Contributions to Education or Career Advancement: If one spouse supported the other’s education or career development during the marriage, it can be considered a marital contribution.
- Emotional and Psychological Support: The emotional and psychological support provided by each spouse to the other during the marriage is also regarded as a significant marital contribution.
- Managing Finances: Handling financial responsibilities, budgeting, and managing joint accounts can be considered a contribution to the marriage.
- Parenting and Child-Rearing: Raising children and fulfilling parental responsibilities is a vital contribution to the family unit.
- Supporting Family Life: Contributions to the well-being and stability of family life, such as maintaining a harmonious household, can also be acknowledged.
It’s important to note that the evaluation of marital contributions is case-specific and can vary based on the unique circumstances of each marriage. A thorough assessment is essential to ensure a fair distribution of assets and equitable outcomes in divorce proceedings.
How Does Marital Contribution Impact the Division of Marital Property in Maryland?
Divorce is a challenging time for both parties. Tension is already high in most cases, and property division can only amplify negative feelings.
In Maryland, the principle of equitable distribution is followed, wherein the court aims to divide all assets and property fairly between the spouses. Only marital property is subject to this equitable distribution.
Marital property typically includes assets and property acquired during the course of the marriage by either spouse, regardless of whose name is on the title or deed. This can encompass various assets, such as real estate, income, investments, retirement accounts, and other possessions acquired during the marriage.
One of the factors that influence the division of marital property is the concept of marital contribution.
The court considers the extent of each spouse’s marital contribution when determining how to divide the marital property equitably. This assessment aims to recognize the efforts and sacrifices made by both spouses during the marriage.
Separate property, which is not subject to equitable distribution, includes assets acquired before the marriage, inheritances, gifts solely given to one spouse, or property designated as separate through a prenuptial or postnuptial agreement.
How Do Maryland Courts Divide Property in a Divorce?
If the court must determine how to divide your property, they will define all marital property and how much it is worth. They will also consider marital debts when assessing the value of the property.
From there, the court will determine how much each spouse receives of the property based on the factors discussed above.
When it comes to property with titles, like a home, the court will not require a transfer change. Instead, they will allot a monetary amount to the other spouse to account for their share of the property.
Since a home cannot be divided, then the court will determine its value. One party can then buy the other out, so long as both agree. The other option is to sell the house and divide the funds. The Maryland court will not determine how to handle the non-divisible funds, the two parties must decide how they want to handle it.
What is Considered Marital Property in Maryland?
According to Maryland law, marital property is anything obtained during the marriage. Whether one or both spouses paid for the item, it is still marital property if acquired during the course of the marriage.
The specific items that constitute marital property can vary widely. Some examples include:
- Homes, condos, rental properties, and other real estate.
- Checking and savings accounts
- Stock
- Furniture
- Retirement assets
- Cars
- Personal property
However, there are a few exceptions to this law. The following may be obtained during the marriage but not considered marital property:
- Gifts are given to one spouse
- Third-party inheritance
- An item excluded by a valid agreement
What is considered Non-Marital Property in Maryland?
Any property that is obtained before the marriage is considered non-marital. Additionally, the items listed as exceptions above also constitute non-marital property.
Non-marital property includes property acquired while living together before legal marriage.
The non-marital property stays with the party who owns it, it is not divided during the divorce. The spouse who owns the non-marital property can claim it as their own. However, they must be able to provide proof that they solely own the property.
Each party has total control over their non-marital property. They are free to keep it, sell it, or dispose of it without approval from the other party.
Some property can be converted from non-marital to joint ownership during marriage by proper agreements and title changes. One common example is a home or car. While one spouse may have acquired it before the marriage, they could convert it to the joint property by adjusting the title to include the spouse’s name.
Can Assets be Partially Marital?
In Maryland, there can be instances where certain assets may be considered both marital property and non-marital property, known as “mixed property” or “part marital, part non-marital property.”
The classification of property as either marital or nonmarital is essential in equitable distribution during divorce proceedings.
However, certain assets may have mixed characteristics, making their classification more complex. For example:
- Commingling of Funds: If non-marital funds, such as an inheritance received before the marriage, are deposited into a joint bank account and then used for marital expenses, determining the portion of those funds that remain non-marital can become challenging.
- Mortgage Payments: If one spouse owned a property before the marriage, but the mortgage was paid off during the marriage using marital funds, there might be a mixed nature to the property’s value.
- Improvements to Non-Marital Property: If marital funds are used to renovate or improve a non-marital property, the increased value due to those improvements could be considered marital property.
- Active Appreciation: If one spouse owns a business before the marriage, but its value increases during the marriage due to the efforts and contributions of both spouses, the increase in value might be deemed marital property.
In cases of mixed property, the court will carefully analyze the specific circumstances and contributions of both spouses to determine the appropriate division. This process involves evaluating the proportion of marital and non-marital elements in the asset, considering factors like the length of the marriage, financial contributions, and intentions of the parties.
It’s crucial for individuals involved in a divorce with mixed property to seek the guidance of experienced divorce attorneys who can navigate these complexities, advocate for their rights, and ensure a fair distribution of assets during the equitable distribution process in Maryland.
How to Determine Who Gets What In a Maryland Divorce
The court will use the equitable distribution policy to divide marital property. While the division will technically be fair in the eyes of the judge, it may not mean each party gets the assets or property they want most.
The court will assess the following factors to make a fair distribution:
- The duration of the marriage
- The capabilities of each party
- The contributions and value each spouse brought to the marriage
- The circumstances of the marriage ending
Community Property State vs Equitable Distribution
In a community property state, all marital assets are divided exactly 50/50 between the spouses. Maryland is not a community property state
Maryland uses the equitable distribution policy. This means that the court “fairly” distributes the property based on the contributions and earning ability of each party.
The judge will also consider factors like economic misconduct when dividing the property. Economic misconduct is when a spouse wastes material assets (excessive spending, gambling, etc).
In reality, judges often divide marital property in a way that favors the higher-earning spouse. Typically, about ⅓ goes to the lower-earning spouse.
What About Prenuptial Agreements?
If both parties signed a valid prenuptial agreement before the marriage, then it will take precedence over the Maryland property division laws. The prenup may define what you consider marital vs. non-marital property and how to structure the finances in divorce.
Protecting Your Interests
Assessing marital contributions and dividing marital assets during a divorce in Maryland often gets sticky.
If you leave it to the courts, there’s a good chance you won’t walk away with the property you want, even if you get your “fair share.”
It’s best for the parties to collaborate on their own whenever possible. Leveraging knowledgeable divorce attorneys can help divorcing couples come to an agreement about who receives which assets.
Even if you need to go to court, having a knowledgeable divorce attorney on your side can help you ensure a fair division of assets.
The Top Reasons to Partner with an Experienced Maryland Divorce Attorney
Reduce Emotional Tension
Understandably, divorce often comes with high emotions from one or both parties. The process can be difficult and churn up a lot of unresolved issues.
While you can expect such tension, it’s not ideal for ensuring fair, equitable property division. Such high emotions can cloud judgment, propelling divorcing couples to fight rather than collaborate.
Working with an experienced divorce attorney can help to keep tension at bay. Professional legal advice can help you think clearly about property division.
Understand the Your Rights
Within Maryland law, you have rights. A divorce attorney will help you understand your rights and how the laws protect you. We can explain the legal terminology, like marital contributions and marital property, to ensure you fully understand the process. We fight for your best interest, ensuring that you receive fair treatment throughout the process.
Claim Your Non-Marital Property
According to Maryland law, parties must prove ownership of non-marital property. If they do this, then the division excludes this property. A divorce lawyer can help you prove the ownership of assets you had prior to the marriage.
Negotiation Skills
In the midst of an emotional life event like a divorce, it can be difficult to use your best judgment, let alone negotiation skills. While working for your best interests, your family law attorney can implement their professional negotiation skills. These skills are vital for coming to fair agreements with the other party.
Reduce the Chances of Going to Court
While it’s not always possible to avoid going to court for marital property division, an experienced divorce attorney can often help sort things out without a judge. Skilled divorce attorneys can help divorcing parties come to an agreement collaboratively outside of court. They create a strong plan that can solve many common property division disputes. Not going to court saves all parties time, money, and additional stress.
Protect Your Future
Property division is not as simple as splitting up the furniture. It can have major implications on the assets each party walks away with, which is critical for their future. A family law attorney flies to protect your future. This is important in all cases, but especially in high-value asset divorces.
Divorce with a Plan is Here to Help
Divorce is undoubtedly a challenging process, and property division can add further complexity to the situation. While striving for an amicable resolution on your own is ideal, it may not always be possible. In such cases, seeking assistance from a skilled attorney can make a significant difference in securing the assets you desire.
At Divorce With a Plan, our family law attorneys are here to support you. Whether you can reach an agreement amicably or require legal representation, we prioritize your best interests. With a strategic approach, we recognize the importance and vitality of your marital contributions throughout the marriage.
By entrusting your case to us, you can rest assured that we will guide you every step of the way.
Whether you can amicably resolve property division with legal guidance or require strong advocacy, trust in Divorce with a Plan’s family law attorney. We prioritize your best interests and design a strategic plan to guide you through each step of the process, emphasizing the significance and vitality of your marital contributions.
Get in touch with our Maryland divorce attorneys today.