How Maryland Handles Property Division

Maryland follows the principle of equitable distribution, which means assets are divided fairly, but not necessarily equally. The court evaluates several factors to determine what constitutes a just division, including:

• The duration of the marriage
• Each spouse’s contributions (financial and non-financial)
• The economic circumstances of each party
• The value of marital versus non-marital property

The law distinguishes between marital property and separate property. Only marital assets—those acquired during the marriage—are subject to division.

Statutory Framework: Exclusion Includes:

• § 8-201, Maryland Family Law Article:

Defines marital property as all property acquired during the marriage, regardless of how the title is held. Exclusions include property acquired before the marriage, by inheritance, or as a gift from a third party (McKeon Law Firm).

• § 8-202: Marital Home:

Addresses the potential award of the family home to one party, considering factors like the well-being of children or other significant considerations (McKeon Law Firm).

• § 8-205: Equitable Distribution:

Maryland follows equitable distribution principles, which involve dividing property fairly but not necessarily equally. The court considers factors such as the length of the marriage, contributions to family welfare, each party’s economic circumstances, and the circumstances that contributed to the estrangement (McKeon Law Firm).

Case Law

• Noffsinger v. Noffsinger (1981):

Established that appreciation in the value of non-marital assets due to marital contributions can be considered marital property (McKeon Law Firm).

• Dugan v. Dugan (1994):

Confirmed that retirement benefits accrued during the marriage are divisible as marital property (McKeon Law Firm).

• Innerbichler v. Innerbichler (2002):

Addressed the valuation and division of business interests, considering each spouse’s contribution to the business’s growth and success (McKeon Law Firm).

Evaluation Of Different Assets

• Retirement Accounts: Divided based on the portion accrued during the marriage, often requiring a Qualified Domestic Relations Order (QDRO).
• Real Estate: Property acquired during the marriage is considered marital. Division considers who paid the mortgage, improvements made, and each party’s use.
• Business Interests: Evaluated based on growth and operations during the marriage and the involvement of each spouse.
• Personal Property: Divided based on acquisition date, usage, and value—both economic and sentimental.
• Gifts: Typically remain with the recipient, unless they were clearly intended as shared marital property.

Source: McKeon Law Firm