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Introduction: Basics of Equitable Distribution
The State of Maryland is an “equitable distribution” jurisdiction, as opposed to a “community property” jurisdiction. What this means, essentially, is that Maryland operates according to certain legal presumptions with respect to marital property, and more specifically the division of marital property. For one, unless parties have a private agreement which settles property division beforehand, Maryland will divide marital assets in an equitable fashion, which basically means in a manner which is considered fair in view of all the circumstances in a given situation. Importantly, fair does not always mean that marital property will be divided equally in a “50% / 50%” fashion; in some cases, Maryland courts will see fairness in dividing property unevenly, giving more property to one particular spouse for any number of reasons.
Maryland Only Divides Marital Assets
Before we discuss some of the factors which affect property division in Maryland, let’s first briefly reference the fact that Maryland will only divide property classified as “marital.” In other words, not all the property owned by parties in a divorce is considered eligible for division; if, for instance, property is considered “separate property,” meaning it is owned in its entirety by only one spouse, then that property is ineligible for division and remains with the original owner. Naturally, given this state of affairs, one of the main components of the property division process is simply the classification of all property as either marital or separate. Property which is acquired prior to the marriage, defined as seperate by a valid prenuptial agreement, or acquired via gift or inheritance, is generally considered separate property, and any property acquired during marriage not via gift or inheritance is considered marital property.
Certain Factors Will Affect Distribution
For assets classified as marital property, what might be the reasons as to why Maryland courts would divide things unevenly? There are a multitude of factors which may come into play in this context. Dissipation of assets is one of the more obvious factors which will affect division. Dissipation of assets essentially refers to financial misapplication by one of the spouses prior to the finalization of the divorce. If a spouse deliberately uses marital assets for purposes which don’t benefit the marital estate, basically depriving the other spouse of the funds, then this will certainly impact the property division process. Other factors include cruelty – physical, verbal, emotional – substantial imbalances in earning capacity, substantial imbalances in contributions to the marital estate, and others. Understanding the factors which can affect distribution in property division be highly important for the parties involved.
Parties Can Create Private Agreements Freely
Another important thing for Marylanders to understand is that parties have the freedom to contract privately with respect to property division. Equitable distribution is the “default” mode which courts defer to when they assist in property division, but this default mode can be overridden via private contracts. If, for instance, parties choose to develop a marital settlement agreement, or a pre or postnuptial agreement, these contracts will take precedence over whatever determinations the court might independently make. Hence, if spouses create private agreements which deal with all marital property, those spouses will effectively take the whole property division phase of divorce out of the hands of the court.
Contact the Murphy Law Firm for Additional Information
Readers who want to know more about equitable distribution, factors which influence property division, the classification of property, the inception of title principle, and any other related family law topic, contact one of the family law attorneys at the Murphy Law Firm today by calling 240-219-5243.
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