What Happens to the House in a Maryland Divorce?

Your house is likely one of the most valuable and important assets that will be part of your Maryland divorce. Things can get very emotionally charged when discussing who gets the house or what it is worth. Knowing the possibilities of what could happen to the house help you head into your divorce with foreknowledge and a plan. An attorney will help guide you through your options and protect your legal rights throughout the process. 

At RPM Law, our Maryland family law attorneys help you divide your house and the rest of your assets in a divorce.       

Maryland Uses “Equitable Distribution,” Not 50/50 Splits

Maryland is an equitable distribution state. That means the court divides marital property in a way that is fair, not necessarily equal. The family home is often marital property, even if it is titled in only one spouse’s name, as long as it was purchased or paid down during the marriage.

When determining what happens to the house, Maryland courts consider:

• Each spouse’s financial circumstances
• Contributions to the home (financial and non-financial)
• The length of the marriage
• The needs of any children
• Whether one spouse can afford the home after divorce
• Any marital misconduct that affected finances

Determine Whether the Home Is Marital Property

Before deciding who keeps the house, Maryland courts determine whether the property is:

• Marital Property: acquired during the marriage
• Non-Marital Property: acquired before marriage, by inheritance, or by gift
• Mixed Property: a combination of both

Even if one spouse bought the home before the marriage, marital contributions, such as mortgage payments, renovations, or refinancing, can create a marital interest. That marital portion is subject to equitable distribution.

Option 1: One Spouse Buys Out the Other

A buyout is one of the most common outcomes in Maryland divorces. This happens when:

• One spouse wants to stay in the home
• That spouse can afford the mortgage and upkeep
• The spouses agree on the home’s value or obtain an appraisal

The buying spouse pays the other spouse for their share of the marital equity. This can be done through:

• Cash payment
• Refinancing the mortgage
• Offsetting with other marital assets (retirement accounts, vehicles, etc.)

Option 2: Sell the Home and Divide the Proceeds

If neither spouse can afford the home, or if neither one wants it, or if the parties are not in agreement as to what to do with the home, the court may order the property sold. This is common when:

• The mortgage is too high for one spouse to carry alone
• The parties cannot agree on a buyout
• The home has significant equity that needs to be divided
• The home is underwater and selling is the only practical option

After the sale, the spouses divide the proceeds according to the court’s equitable distribution ruling. This may be 50/50, but it can also be adjusted based on contributions, financial need, or other factors.

Option 3: Deferred Sale for the Benefit of Children

Maryland courts may allow one spouse (usually the custodial parent) to stay in the home temporarily. This is designed to:

• Provide stability for children
• Allow them to remain in the same school district
• Avoid forcing a sale during a difficult transition

A use and possession order typically lasts until:

• The youngest child graduates high school
• A set number of years passes (the court cannot award use and possession for more than three years, but the parties may negotiate a longer term)
• The spouse in the home remarries

After the order ends, the home is usually sold or one spouse buys out the other.

Option 4: Co-Ownership After Divorce (Less Common)

Some couples choose to co-own the home for a period of time, especially when:

• The market is unfavorable for selling
• They want to wait for children to finish school
• One spouse needs time to qualify for refinancing or an assumption

This arrangement requires clear agreements about:

• Mortgage payments
• Repairs and maintenance
• Tax deductions
• Future sale terms

Courts generally prefer clean financial separation, so co-ownership is usually voluntary, not court-ordered.

How Courts Decide Who Gets the House

Maryland judges evaluate several factors, including:

• Each spouse’s income and ability to maintain the home
• Who has primary physical custody of the children
• The home’s sentimental or practical value
• Contributions to the home’s purchase, upkeep, and improvement
• Whether keeping the home is financially realistic

Learn More About the Marital Home in a Maryland Divorce

The family home might be divided, sold, or awarded to one party over the other. Even then, there is far more to it. Having a qualified attorney there to guide you through the divorce process will make a major difference. It also helps ensure your rights are protected at each step. 

Our team at RPM Law are ready to help with your family law needs. Contact us today for a consultation.