A guide to protecting personal assets in divorce

Maryland divorce law requires marital property to be divided equitably, which is not the same as equally. An equitable division of property is one in which each spouse receives their fair due, taking into account the totality of their circumstances.

A divorce lawyer in Howard County can help you protect your personal, separate property from being considered for division in a divorce and ensure you receive a fair amount of shared assets.

Maryland divorce Courts divide property equitably, not equally

Some states divide marital property 50/50, but Maryland is not one of those. There are several factors a Judge considers when distributing marital assets:

The financial and non-financial contributions each spouse made during the marriage
The worth of assets owned by each spouse
The financial standing of both individuals
The length of the marriage
The age of each spouse

What is considered marital property? What is not?

Marital property is any property acquired after you and your spouse wed. It doesn’t matter if the real estate, bank account, or deed is under your name, your spouse’s name, or both—it is still considered marital property.

Your personal property, including any intellectual property, may also be considered marital property. These categories can be extremely broad, and because the property must be fairly divided, it is important to have skilled legal representation to help protect your interests.

Some property may be part marital and part non-marital. One common instance is if one spouse purchased a marital home before marriage but then used marital funds to renovate or upgrade or to pay the mortgage. In this case, the house is considered marital property, and both spouses are entitled to an equitable share.

Keep your separate property safe by keeping good records

You need the right supporting documentation to prove to the Court that certain pieces of property are yours. Maryland designates two types of property: separate (you get to keep it) and community (you have to split it). Usually, any property you purchase before marriage is considered separate, and that after marriage as marital.

However, separate property can become marital property if you use marital funds to improve its value. For example, a house bought before marriage can become marital property because shared funds were used to pay the mortgage and for renovations. If you otherwise commingle marital and separate funds or property, the Court may determine that both spouses deserve a share.

Your records can show how you paid for the mortgage (i.e., if you used your own salary and didn’t use marital funds for the mortgage or any repairs, you may have a case that the house is entirely yours). Receipts for big-ticket purchases, from an engagement ring to a vehicle or vacation home, can also help bolster your claim that a specific property should be considered separate.

Finally, if you receive expensive gifts or an inheritance, it is exclusively yours, even if you were married when you received it. Track down proof that the gift was specifically given to you, or ensure you have a copy of the will or other estate plan document showing that you solely inherited the property (not you and your spouse).

Be very careful about financial decisions you make while your divorce is pending

As experienced divorce attorneys, we have seen a lot of dumb mistakes made because each spouse is determined to preserve as much property and assets as they believe they are entitled to.

This is not advice, per se, but it is a caution. Do not make mistakes like these:

Draining bank accounts, including retirement accounts and investments. Even if only your name is on the account, your spouse may make a strong argument entitling them to half
Transferring property to someone else or giving an item to a close friend or family member to “borrow” or “hold.” Judges have seen these attempts to hide assets countless times and will look unfavorably on you when they catch this happening
Selling an asset cheaply or pawning it, thinking to pick it back up from the buyer after the divorce is final. Again, Judges can see through these tricks and could slap you with penalties for dissipation of marital assets

Be safe and smart during the discovery process, as each spouse discloses the extent of their assets and debts. You can be even smarter if you think your spouse is hiding assets or engaging in tricks like these: Hire a forensic accountant to determine the full extent of their holdings. When you work with a firm like ours, this is one of the ways we can help you secure your rightful share of marital property.