Marital Property in Maryland; definition and distribution.

In Maryland law, marital property is defined as the property acquired by one or both of the parties during the marriage. It does not include property acquired before the marriage, property acquired by inheritance or as a gift from a third party; property excluded by valid agreement, such as a pre-nuptial agreement; and any property directly traceable to any of these sources.

Non-marital property can become marital property when the non-marital property is comingled with marital property.

Property jointly owned by husband and wife cannot be sold by one without the consent of the other.  The creditors of one spouse cannot have any claim to it, and only creditors of both parties may move against  a property which is jointly owned.

When either spouse dies, the survivor becomes the sole owner of the jointly owned property.

Many couples have joint bank accounts. Either spouse can withdraw funds from the jointly titled account. If one spouse liquidates an account, the other spouse can ask the court to determine whether the funds were used for a legitimate or illegitimate purpose, or if the funds were dissipated.

The parties may agree on the division of any property but if they cannot agree on the division, the court will devide the property according to the Marital Property Act.

Generally speaking, there are two systems for distribution of marital property in United States: “community property” and ” equitable distribution”. Maryland has an “equitable distribution” statute which means the court doese not necessarily divide the property equally between the spouses, as long as the division is fair.

The court can and should distribute any marital property but if a property is titled to one spouse, it cannot transfer ownership of that property to the other.  In these instances, the court grants a monetary award to one spouse to adjust the rights and equities of the parties.

When deciding how to divide the property and whether to make a monetary award, the court considers a number of factors including: what each spouse contributed; both financially and otherwise, to the well-being of the family; the economic circumstances of each spousehow long the marriage lasted, the age, health, and physical and mental condition of each spouse; how and when specific assets were acquired; whether either spouse contributed separate property to property the couple owns as tenants by the entirety; whether either spouse has been awarded alimony and/or possession of the family home; whether either spouse committed marital misconduct that contributed to the divorce; and such other factors as the court deems necessary or appropriate to consider in order to arrive at a fair and equitable monetary award.

There is a difference between the concept of “marital property” and “family use personal property”.  Family use personal property can include the family home, car, furniture, appliances, etc.  The court can award exclusive use and possession of the family home and other family use property to the spouse with custody of the minor child or children for up to three years from the date of the divorce decree. The use and possession award can include an order to pay expenses. The court has the authority to allocate financial responsibilities for property that is the subject of a use and possession award.