Md. Code, Family Law Section 8‑205, sets out the court’s authority and the factors to consider when dividing marital assets. In a divorce action, the judge determines how property acquired during the marriage is divided. In all divorce matters where property is at issue, the parties are required to submit a joint property statement. The statement is often referred to as the J 902 form. When deciding how to divide marital property, the court considers marital as well as non-marital property. Property that the parties are not in agreement as to whether to characterize as marital or non-marital is also included on the joint property statement. Marital property is defined as all property acquired during the marriage. This includes but is not limited to Real Property, Automobiles, Retirement, Bank Accounts and Household Furnishings. If one party acquires real property prior to the marriage but makes mortgage payments out of his or her income, the property becomes part marital. The court will consider the pre-marital value of the property and divide the marital portion. For example, if the premarital value of the property is $100,000.00 and the property appreciated to $300,000 during the marriage, the marital portion would be $200,000.00. The court would divide the $200,000.00 less any liens, mortgages or other encumbrances. In situations where the property is jointly titled, the court can order a sale of the property and require that the proceeds of the sale be divided once all expenses, liens and encumbrances are satisfied. In making equitable distributions, the court can also consider a parties’ marital and non-marital contributions during the marriage. The longer the marriage, the more likely the court will make a finding that the property acquired is marital. In situations where one spouse commingles separate property with marital property the character of that property may be considered as marital. The most important take away relating to equitable distribution in divorce is that courts focus on the property itself and not the preferences of either party.
If you are in the midst of a contested divorce, The Law Office of Lynndolyn Mitchell is exceptionally qualified to serve as your counsel.
