What Happens with the Marital Home During a Maryland Divorce?

You are in the middle of a divorce and are now wondering: what happens with our marital home? This is one of your most significant assets, both in its overall value and the emotional meaning it has to you. It could be a family resident, other jointly owned, property, or even be a home you came into the marriage with. Maryland courts have to consider many factors in determining what happens to the home both during and after the divorce. 

At RPM Law, our Maryland divorce attorneys are skilled at answering the questions you have. We help clients through the entire divorce process. We help protect assets like your home, deal with child custody matters, and much more.  

Is My Home Considered Marital Property in the Divorce?

Knowing whether your home is considered “marital property” can be really confusing. Under state law, your home is likely marital if it was purchased or acquired during your marriage. Usually this means you utilized marital funds to make that purchase as well. Often, only one spouse is on the deed, but this can still be marital property under state law.

There are exceptions that can make your home separate property. If you received it as a gift or inheritance, you may be entitled to the home separately from the other marital assets. If you used marital funds to maintain the home, renovate it, or pay the mortgage, however, it might still be marital. It also requires you track the funds used to purchase it and show they were not commingled. This can be difficult without the help of your attorney. 

These determinations are often very complicated. They are fact-based and unique to your situation. Speak with a qualified attorney about your unique situation. 

Options for Dividing the Marital Home

Most people think that divorce courts divide everything 50/50, but that’s not necessarily the case. Courts use the equitable distribution model to allocate assets fairly, not equally. When it comes to your home, the court may:

• Sell the Home and Divide the Proceeds: If you can’t agree or the court can’t allocate the home to one of you, it may require you to sell the house and divide up the proceeds.
• One Spouse Buys Out the Other: If one of you wants to keep the house, you can agree to buy out the spouse. This involves payment of the applicable ½ value of the home and refinancing any mortgage.
• Deferred Sale or Use and Possession: When kids are involved, the court might delay the sale of the home. This establishes some consistency for the children. 

Factors Courts Consider When Deciding Who Gets the House

When deciding what happens to the marital home, Maryland courts evaluate several factors:

• Each spouse’s financial situation 
• Their ability to maintain the home
• How the parties paid for the home
• How the parties maintained or improved the property 
• Custody arrangements and the best interests of minor children
• Whether the home is marital or non-marital property
• Any prenuptial or postnuptial agreements that affect ownership

Impact of Divorce on Mortgage and Title

Divorce won’t automatically update your title or mortgage. In fact, both spouses can still be liable on the mortgage after a divorce if not properly handled. One person must refinance or pay off the loan to remove the other as a liable party. This is typically handled as part of your overall divorce case. 

Get Help from a Dedicated Maryland Divorce Attorney Right Away

Knowing what to do about your marital home can be tricky, but you have the right to legal counsel. Speaking with a skilled attorney can put your mind at ease, teach you about your rights, and provide you the representation needed to protect your legal rights. Our team at RPM Law stands ready to help with your child custody needs. Contact us today for a consultation.