Joe loves Annie so much that, after their marriage, he added Annie’s name to the deed of the home he purchased before the marriage. They deed is now titled as Tenants by the Entireties (“T/E”). Joe saw no need to put Annie’s name on the mortgage since he planned to pay the mortgage and other expenses on the home, as he had always done. After five years of marriage (and mostly un-wedded bliss), Joe and Annie decide to go their separate ways and Joe now wants to file for divorce. Joe remains in the marital home after he and Annie separate and thinks it only proper for Annie to help pay the mortgage and upkeep on the home. Joe consults with a Family Law and Divorce Attorney only to find out that not only is Annie not responsible to the mortgage lender BUT that she may also be granted a monetary award for her marital interest in the home.
A home titled as T/E is considered Marital Property and is therefore subject to equitable distribution under the laws of Maryland. Although your spouse may not be obligated under the mortgage note, he or she still has a marital interest in the marital home. Under certain circumstances the court can grant to either party a monetary award for the value in the marital home, after deduction of the outstanding mortgage, to adjust the equities of each of the parties in a divorce action.
Even if one spouse decides to stay in the home after the divorce, once the court grants a divorce, the T/E ownership interest is severed and reverts to the title of Tenants in Common. Either party can then institute an action to force a judicial sale of the property, since both names are still on the deed. There is generally no defense to such an action. However, if both names are NOT on the mortgage, the lender will look only to the obligor spouse for payment of the mortgage. In addition, if a money judgment is granted to a creditor against either party, the creditor can force a sale of the home, even if the court does not, as it is no longer titled as T/E.
An experienced Family Law and Divorce Attorney will be able to work out the details of your case with you and help you decide how to proceed.
