What Happens to the Marital Home During a Divorce in Maryland? 

During a divorce in Maryland, one of the most critical and emotionally charged decisions involves determining the fate of the marital home. This property often represents not only a substantial financial asset but also a space filled with personal memories and emotional significance. The process of determining what happens to the marital home involves a complex interplay of legal principles and practical considerations, deeply rooted in Maryland’s marital property laws.

Under Maryland law, assets acquired during the marriage are generally deemed marital property, irrespective of whose name is on the title. This classification extends to the marital home unless specific exceptions apply, such as assets acquired before the marriage or as individual gifts or inheritances. Non-marital property, conversely, encompasses assets obtained prior to the marriage or through means that explicitly maintain their separate status.

The principle of equitable distribution governs the division of marital property in Maryland, aiming for a fair, though not necessarily equal, allocation. Courts may decide to sell the home and divide the proceeds, allow one spouse to buy out the other’s share, or grant temporary use and possession to the custodial parent of any minor children. Factors influencing these decisions include each spouse’s contributions to the marriage, the value of the property, economic circumstances, the duration of the marriage, and the reasons for the divorce.

Understanding these legal frameworks and the factors considered by the courts, as outlined in Maryland Family Law § 8-205, is crucial for anyone undergoing a divorce in Maryland. Consulting with an experienced family law attorney can provide invaluable guidance through this intricate process, ensuring that decisions regarding the marital home are made fairly and effectively.

Marital VS. Non-Marital Property

Marital Property

In Maryland, marital property is defined as all property acquired by either spouse during the course of the marriage, regardless of how title is held. This includes real estate, personal property, financial assets, and other types of property. The primary characteristics of marital property are:

1. Acquired During the Marriage: Any assets obtained by either spouse from the date of marriage until the date of divorce are considered marital property.
2. Joint Contributions: Property purchased with joint funds or contributions by both spouses during the marriage.
3. Marital Funds: Any property purchased or enhanced using marital funds or contributions, even if the title is in one spouse’s name.

The legal definition and specifics regarding marital property in Maryland can be found in Maryland Family Law Code, Section 8-201. This statute outlines what constitutes marital property and provides the legal framework for its identification and distribution. For the exact wording and more details, refer to the statute itself: Maryland Code, Family Law § 8-201.

Non-Marital Property

In Maryland, non-marital property is defined as property that was acquired by one spouse prior to the marriage, or under specific conditions that keep it separate from marital assets. Non-marital property includes:

1. Property acquired before the marriage: Any assets owned by either spouse before they got married.
2. Gifts and inheritances: Property received by one spouse as a gift or inheritance from a third party, unless it was intended for both spouses.
3. Property excluded by valid agreement: Property that is excluded from marital property by a pre-nuptial or post-nuptial agreement.
4. Property directly traceable to non-marital sources: If marital funds were not used for its upkeep or improvement, and it has not been commingled with marital assets.

The legal definition and distinctions regarding non-marital property in Maryland can be found in Maryland Family Law Code, Section 8-201. For the precise language and detailed information, you can refer to the statute itself: Maryland Code, Family Law § 8-201.

Options for the Marital Home in Maryland Divorce Cases

The marital home often holds significant financial and emotional value for divorcing couples. In Maryland, when a home is considered marital property, the court has several options for its disposition. Understanding these options is crucial for making informed decisions during the divorce process.

Selling the Home

One common resolution is for the court to order the sale of the marital home. The proceeds from the sale are used to pay off any outstanding debts, such as mortgages or home equity loans. The remaining equity is then divided equitably between the spouses. This option is often chosen when neither spouse can afford to maintain the home independently or when both parties prefer a clean break from the shared asset​.

Transferring the Title

Another option is transferring the title of the home to one spouse. This typically requires the spouse retaining the home to buy out the other spouse’s share of the equity. The buyout usually involves refinancing the mortgage to remove the other spouse’s name from the loan. This option is suitable when one spouse has a strong desire and the financial ability to maintain the home.

Use and Possession

In cases involving minor children, the court may grant the custodial parent use and possession of the marital home for up to three years post-divorce. This arrangement aims to provide stability for the children by allowing them to remain in their familiar environment. At the end of the use and possession period, the home may either be sold or the title may revert to the spouse who originally held it. This approach prioritizes the children’s needs while allowing the custodial parent time to adjust financially​.

Additional Considerations

Deciding what happens to the marital home involves careful consideration of various factors, including financial stability, the well-being of any children involved, and the emotional attachments to the property. Before making any decisions, it is crucial to consult with a family law attorney. This step ensures that you fully understand the legal and financial implications, providing you with the guidance and support you need during this challenging time.

Court Considerations

When determining the division of the marital home, Maryland courts consider several factors to ensure an equitable distribution:

• Contributions of each spouse to the well-being of the family (both monetary and non-monetary).
• The value of all property interests of each party.
• The economic circumstances of each party at the time of the award.
• The circumstances leading to the estrangement of the parties.
• The duration of the marriage.
• The age and health of each party.
• The efforts each party made in acquiring and maintaining the marital property.
• Any alimony awards or provisions for family use of personal property or the family home.
• Any other factor that the court deems appropriate or necessary to consider in order to achieve a fair and equitable monetary award or transfer of an interest in property as outlined in Maryland Family Law § 8-205 subsection (a)(2), or both.

These factors are outlined in Maryland Family Law § 8-205 to help the court make a fair and equitable decision regarding property division, including the marital home.

Before deciding to keep the marital home, it’s crucial to assess whether you can afford the mortgage and upkeep on a single income. Consulting with a financial planner or attorney can help you understand your options and make an informed decision.

Contact Our Maryland Property Division Attorney

Do you have questions about marital property or property division? Contact our Maryland property division lawyer at Shah & Kishore for answers to your important legal questions by calling (301) 315-0001. We listen, we care, and we deliver results.