PRACTICE AREAS

In Maryland, property division in a divorce follows the principle of equitable distribution, which means property is divided fairly, but not necessarily equally. The court will consider various factors to ensure the division is just and reasonable.

The court takes the following steps:

• Identify marital property: Marital property generally includes any property acquired during the marriage, regardless of who holds the title or who paid for it. This includes assets such as the family home, vehicles, retirement accounts, and debts.

• Determine if the property is titled and to whom: Maryland property law is controlled by title. If an asset is titled to one party, that party will keep that asset. Maryland law only allows for limited transfer of property from the titled owner to a spouse not holding title when addressing retirement accounts and houses. Distributing property by title can create an unequitable division of marital assets. In such a case, the Court may order the spouse retaining more assets to pay a monetary award of cash to the other party to balance the equities.

• Determine the value of the property: After identifying the marital property, the court will assign a value to each asset and debt.

• Divide the property: The court considers several factors when deciding how to divide untitled property, including:

  • The length of the marriage.

  • The contributions (financial and non-financial) of both parties.

  • The economic circumstances of each spouse.

  • The health, age, and employability of each spouse.

  • The standard of living established during the marriage.

While the division is not always equal, the court strives for fairness. In some cases, one spouse may be awarded a larger share of property based on factors such as the other spouse’s ability to pay or specific needs.

In Maryland family law, a monetary award refers to a financial payment made by one spouse to the other as part of the division of marital property during a divorce. Unlike alimony, which is a support payment, a monetary award is typically a one-time lump sum payment meant to balance out the division of property in situations where one spouse is entitled to more of the marital assets than the other.

A monetary award is typically awarded when the marital property is not divided equally or fairly through other means, or when one spouse has contributed more significantly to the acquisition of marital assets. It is used to ensure that both spouses receive a fair share of the marital property. In Maryland, courts are required to divide marital property in an equitable (but not necessarily equal) manner.

When determining whether a monetary award is appropriate, and the amount, the court will consider several factors, including:

• Contribution of Each Spouse to the Marital Property: This includes both financial and non-financial contributions, such as homemaking, child-rearing, and support of the other spouse’s career or education.

• Length of the Marriage: Longer marriages tend to involve more intertwined financial and property interests, which may influence the court’s decision on a monetary award.

• Economic Circumstances of the Parties: The court will evaluate each spouse’s financial situation after the divorce, including income, assets, debts, and the ability to support themselves.

• Pre-Marriage and Non-Marital Property: The court may also consider any separate property each spouse owned before the marriage and how the marital property is divided in relation to that.

• Contributions During the Marriage: A spouse may be entitled to a monetary award if they made significant contributions to the acquisition of property, even if the property is titled in the other spouse's name.

• Other Factors Affecting Fairness: This can include wasteful dissipation of assets (e.g., one spouse spending marital funds irresponsibly or for purposes unrelated to the marriage), or any misconduct that affects the property division.

A monetary award is often paid in a lump sum, but in some cases, the court may allow for installment payments. The method of payment will depend on the parties' financial circumstances and the court’s ruling. The court may order that the award be paid from a spouse’s share of the marital property, or through other assets such as savings, investments, or retirement funds.

A monetary award is a final decision made by the court during the divorce proceedings, and it is not subject to modification unless there is a significant change in circumstances. However, if a spouse fails to pay a monetary award as ordered, the other spouse can seek enforcement of the award through the court. Enforcement options may include wage garnishment or other legal actions to collect the payment.