Under Maryland law, “Marital Property” means the property, however titled, acquired by one or both parties during the marriage and includes any interest in real property held by the parties as tenants by the entirety unless such real property is excluded by valid agreement. In addition to real property, Marital Property also includes other property acquired during the marriage, such as pensions and other retirement benefits, 401k and other deferred compensation plans, cars, and furnishings.
In Maryland, Marital Property DOES NOT include property (1) acquired before marriage; (2) acquired by inheritance or gift from a third party; (3) excluded by valid agreement; or (4) property that is directly traceable to any of these sources. However, comingling of non-marital property with marital property can destroy the non-marital character of the property.
When considering how Marital Property should be distributed between the parties, the court considers many factors in deciding the character of property acquired during the marriage; among them, the monetary and nonmonetary contributions made by each of the parties, what circumstances contributed to the breakup of the marriage, the age and mental condition of each party, how and when marital property was acquired, including the contributions made to the property during marriage, and other factors, including potential tax consequences resulting from distribution to each of the parties.
In Maryland, after the court determines which property is Marital Property and the value of the Marital Property, it has the authority to transfer an interest in the property, grant a monetary award, or both, as an adjustment of the equities and rights of the parties. Even if the distribution of Marital Property is settled by agreement between the parties, the court may consider such distribution in making a monetary award.
The laws in Maryland governing distribution and valuation of Marital Property are complex. It is therefore very important to seek the advice of an attorney experienced in marital property distribution before you agree to or otherwise decide upon the distribution of any property acquired during the marriage.
