Property Division | Leffler, Bayoumi & Oliver, LLC

Property Division in Maryland Divorce

Maryland follows the principle of "equitable distribution" when dividing marital property in divorce. This means that marital property is divided fairly, though not necessarily equally. Understanding what property is subject to division and how courts determine a fair split is essential to protecting your interests.

Marital vs. Non-Marital Property

The first step in property division is classifying assets as marital or non-marital:

Marital Property

Property acquired by either spouse during the marriage is generally marital property, regardless of whose name is on the title. This includes the family home and other real estate purchased during marriage, retirement accounts and pensions earned during marriage, investment and bank accounts, vehicles, furniture, other tangible personal property, business interests acquired during marriage, and stock options and deferred compensation.

Non-Marital Property

Certain property remains separate and is not subject to division during a divorce. This includes property acquired before the marriage, inheritances received by one spouse, gifts given specifically to one spouse, and property excluded by valid prenuptial agreement.

Commingled and Traceable Property

When separate and marital assets are mixed, or "commingled," the distinction between them can become less clear. For example, depositing an inheritance into a joint account or using premarital funds to improve jointly titled property may affect how an asset is classified. In some situations, commingling can convert separate property into marital property.

However, commingling does not automatically eliminate a spouse's separate interest. If non-marital funds can be clearly traced to a specific asset or contribution, the court may still recognize that interest and award a monetary adjustment to reflect it. Careful documentation and financial analysis are often critical to protecting these claims.

How Courts Divide Property

Maryland courts consider multiple factors when determining equitable distribution:

Contributions to the marriage: Both monetary and non-monetary (homemaking, child-rearing)
Value of each party's property: Including non-marital assets
Economic circumstances: Each spouse's financial situation
Duration of the marriage: Longer marriages may result in more equal division
Age and health: Physical and mental condition of each spouse
How and when property was acquired: Including efforts to accumulate assets
Contributions to other spouse's career: Supporting education or business growth
Dissipation of assets: Whether either spouse wasted marital assets

The Family Home

For many families, the marital home is both the most valuable financial asset and the most emotionally significant one. Depending on the circumstances, the home may be sold and the proceeds divided, one spouse may buy out the other's interest, or the sale may be deferred for a period of time, often to provide stability for children. In limited situations, spouses may temporarily continue co-ownership.

We guide clients through these options with careful attention to mortgage obligations, tax consequences, refinancing feasibility, and long-term financial impact so that decisions about the home support both immediate needs and future stability.

Retirement Accounts and Pensions

Retirement assets frequently represent a substantial portion of the marital estate and require specialized handling to divide correctly. Proper division often involves Qualified Domestic Relations Orders (QDROs), accurate valuation of pensions and other future benefits, and strategic planning to avoid unnecessary taxes or early withdrawal penalties. Survivor benefits and long-term protection must also be addressed to ensure the intended division is preserved over time.

Our attorneys regularly work with financial professionals and plan administrators to ensure retirement assets are properly valued, structured, and transferred, protecting our clients' long-term financial security.

Business Interests

When a spouse owns a business or professional practice, property division becomes significantly more complex. Determining what portion of the business is marital versus pre-marital often requires formal valuation and careful financial analysis. Issues such as goodwill, future earning capacity, and cash flow must be addressed, and any division or buyout must be structured in a way that preserves the ongoing viability of the business. We work closely with valuation experts to ensure these interests are accurately assessed and strategically handled.

Debts and Liabilities

Debt isn't always "split" in a Maryland divorce. Unsecured debt is generally assigned to the spouse whose name is on the account, unless it can be shown the debt was incurred for marital or family purposes, then it may be considered in the court's overall equitable distribution analysis.

Protecting Your Assets

At Leffler, Bayoumi & Oliver, LLC, we help clients protect their property interests by thoroughly identifying and valuing all marital assets, tracing non-marital property to protect separate assets, and working with appraisers, accountants, and financial experts. We negotiate fair property settlements, present compelling cases in court when needed, and ensure proper documentation of all agreements.