Dividing property can be one of the most stressful parts of divorce. In Maryland, the court tries to split property equitably, considering each spouse’s contributions to the marriage, financial situation and earning potential. However, this process can be particularly complicated for high-asset divorces, where many properties are difficult to identify and value accurately.
Here are some common challenges:
Hidden or complex assets
Complex assets – like real estate, businesses, investments and retirement accounts – are common in many divorces. However, they are also hard to value accurately and require specialized knowledge and valuation methods, leading to disputes over their true worth.
In some cases, a spouse may even transfer their properties to third parties or underreport their assets to appear to have fewer resources and manipulate the distribution of properties. These hidden assets require a lengthy investigation, prolonging the divorce process.
Commingling of properties
This happens when property owned by one spouse before marriage gets mixed with properties acquired during the marriage. The commingling of properties can make it hard to figure out which parts are marital property and subject to distribution. This often occurs when spouses use separate funds to pay for marital expenses, like using inherited money to pay for a family home or adding the spouse’s name to the title of a property owned before the marriage.
Marital properties titled to just one spouse
Maryland courts do not have the authority to directly transfer ownership of marital property titled solely in one spouse’s name to the other spouse. This means that if only one spouse legally owns a house, car or other asset, the court cannot simply change the title to the other spouse’s name.
To address this, the court might use other methods to ensure a fair division, such as awarding a monetary amount to the other spouse to balance out the value of the titled property. They might also order the sale of the property and divide the proceeds between the spouses.
In most cases, both parties will need to negotiate and come to an agreement on how to handle such property. However, these situations can lead to disputes, requiring careful negotiation and legal guidance.
Protect your financial future
Divorce can be a challenging and emotional journey, but you don’t have to navigate this path alone. Taking proactive legal steps now can help secure your financial future and bring you peace of mind.