What Happens to Rental Property in a Divorce in Maryland?

Rental Property and Divorce In Maryland

In most cases, rental property is treated as marital property in a Maryland divorce, so it can be divided by the court. But there are some exceptions to this rule.

Rental property may not be considered marital property if:

• one of the spouses owns the property as an inheritance;
• the spouses had a prior agreement that the said rental property would not be considered marital property;
• only one of the spouses received the property as a gift; or
• The rental property was bought with inheritance money, a gift, or money both spouses agreed would not be marital property.

Circuit Courts in Maryland will evaluate various aspects when dividing rental property. These include the income generated by the property, the length of the marriage, the contributions of each spouse to the property, and the future financial needs of each spouse.

The court may also award one spouse sole ownership of the rental property or sell the property and divide the proceeds between the spouses. In some cases, the court may also require one spouse to buy out the other’s share of the property.

Family courts may also consider the debt associated with the property, such as mortgages or loans. If the property has debt, the judge may divide the debt between the spouses in line with how the property is divided.

Bear in mind that the outcome of the division of rental property in a divorce in Maryland can be influenced by a prenuptial agreement if available. In such cases, the terms of the prenuptial agreement will be considered by the court when dividing the property.

Can a Rental Property Be Considered Separate Property in a Maryland Divorce?

Yes, rental property can be considered separate property in a divorce if it meets any of the conditions explained earlier. However, even if the rental property is considered separate property. Income from the property during the marriage may be seen as marital property and could be divided by the court.

The key point is that determining if rental property is separate or marital can be complex and depends on various factors.
Take, for example, a situation where one spouse acquires the property before marriage. In that case, the property will be considered separate.

After the marriage, if you use marital funds to pay the mortgage. The property may become marital property instead of separate property.

Get a Divorce Lawyer From Divorce With a Plan

It’s best to talk to an experienced divorce attorney in Maryland if you have rental property. This will protect your rights and interests during the divorce.
If this is your situation now or in the future, you need a consultation with a family law attorney from Divorce With A Plan.