Assets Division in a MD Divorce
In every Maryland divorce, one of the most important and often most emotional issues is how property and finances will be divided. Along with child custody, the division of assets can have a lasting impact on each spouse’s financial stability and future goals. Understanding how Maryland law treats marital property and debt helps you make informed decisions during your divorce.
At Petrelli Previtera, LLC, our attorneys guide clients through this process with a clear strategy: to protect what matters most and pursuing fair, practical outcomes that help you move forward.
How Maryland Divides Assets in Divorce
Maryland follows an equitable distribution system. That means marital assets and debts are divided in a way that the court considers fair (but not necessarily 50/50). Judges look at the circumstances of the marriage, each spouse’s contributions, and the family’s financial picture to decide what is equitable.
If spouses can reach an agreement, their terms are written into a marital settlement agreement and approved by the court. When no agreement can be reached, a judge will determine how property is divided after reviewing evidence and applying Maryland’s statutory factors.
The Three Steps to Property Division Under Maryland Law
- Classify property as marital or non-marital.
Property acquired during the marriage is usually marital unless it was a gift, inheritance, or excluded by a valid agreement such as a prenuptial or postnuptial contract. (See our page on Marital and Non-Marital Property in Maryland.) - Determine the value of the property.
Assets such as bank accounts, retirement funds, and real estate are valued using appraisals or account statements. Business interests or investments may require expert valuation. - Divide assets fairly through agreement or court order.
If the judge finds that an equal split would be unfair, they can make a monetary award to balance the distribution.
What Counts as Marital Property
Marital property includes most assets acquired during the marriage, such as:
- The marital home and other real estate
- Cars, furniture, and jewelry
- Retirement accounts, pensions, and investments
- Business interests or stock options
- Bank and brokerage accounts
Debts tied to marital property—like mortgages or car loans—are also considered. Courts evaluate both assets and debts when determining what is fair.
Property Excluded from Division
Certain assets are excluded from the marital estate, including:
- Property acquired before the marriage
- Gifts or inheritances received by one spouse
- Property excluded by a valid agreement (such as a prenup)
- Assets directly traceable to these sources
When property is a mix of marital and non-marital funds, documentation and tracing are essential to determine what portion is subject to division.
Equitable Does Not Always Mean Equal
Maryland courts aim for fairness, not strict equality. A judge may order a division other than 50/50 when the facts support it. For example, if one spouse significantly contributed to the household while the other misused marital funds, the court may adjust the award accordingly.
This approach recognizes that both financial and non-financial contributions, like raising children or managing the household—create value in a marriage. To learn how the court evaluates these details, see How You Can Protect Assets During Divorce.
Factors the Court Considers
When determining whether to make a monetary award or how to allocate property, Maryland judges must consider several statutory factors, such as:
- Each spouse’s financial and non-financial contributions
- The economic circumstances of each party
- The duration of the marriage
- The reasons the marriage ended
- Each spouse’s age, health, and future earning capacity
- Any court orders related to the family home or family-use property
These factors allow flexibility for the court to craft an outcome that reflects fairness, not formulas.
Complex Property and High-Value Assets
In high-asset or financially complex divorces, property division can involve businesses, stock options, or investment portfolios. Our attorneys regularly represent clients in high-net-worth divorce cases in Maryland and understand how to trace and value sophisticated assets.
We also handle matters involving hidden assets—including undisclosed accounts, cryptocurrency, or transfers to third parties. Through financial investigation and discovery, we help ensure that all marital property is identified and included in your case.
Protecting What Matters Most
Whether your case involves real estate, retirement accounts, or a family business, working with a skilled attorney can protect your rights and prevent costly mistakes. Maryland’s property division process is designed to be equitable, but results depend heavily on how facts are presented and what evidence supports your claim.
Our Maryland divorce lawyers combine negotiation skill with courtroom experience to pursue outcomes that safeguard your financial future. If you are concerned about how assets or debts will be divided in your divorce, or want to protect certain assets before filing, schedule a consultation today.
