Married couples typically share their income and their financial obligations. They pool their resources to enjoy a higher standard of living together than either could afford on their own. Spouses have to address their shared property and financial obligations if they choose to divorce.
Some people find it easy to handle asset distribution in a Maryland divorce. They may have signed prenuptial or postnuptial agreements that clearly explain what should happen to marital property and debts in the event of a divorce. Other times, spouses can work with each other to settle property division matters amicably. They can then pursue uncontested divorce proceedings.
It can be quite challenging to settle financial disputes with a spouse during a divorce. Some couples have to file contested divorces because they cannot reach an agreement with one another. When that happens, the courts oversee the property division process. What happens to marital property in a litigated or contested Maryland divorce?
Maryland is an equitable distribution state
Every state has unique statutes that apply during divorce litigation. Like a majority of other states, Maryland has an equitable distribution statute. Instead of requiring an even split of marital property, which is common in states with community property laws, Maryland expects judges to focus on fairness.
Equitable property distribution requires a careful approach to the division of both debts and marital property. Spouses must make disclosures regarding their holdings and financial obligations. They may have to split resources ranging from their retirement savings account to their home equity. Judges have the authority to order the sale of marital assets. They can also allocate marital property to either spouse.
Judges can also assign responsibility for marital debts to either spouse, although they cannot make one spouse directly responsible for a debt held solely in the name of the other spouse. In cases where spouses had separate accounts that were technically marital debts, judges may need to factor in the amount owed when making other key determinations about property and financial obligations.
Judges consider numerous factors, including the earning potential of the spouses, the duration of their marriage and even their separate property when deciding what to do with the marital estate. As such, the outcome of equitable distribution proceedings is very difficult to predict or control.
Understanding the basic rules for property division proceedings can help people recognize when settling might be advantageous and when proposed settlements are likely unfair. Spouses preparing for complex divorce cases and property division litigation may require the support of a legal professional to better ensure they obtain a fair outcome.