How Maryland Divides Property in a Divorce (2026)

Maryland divides marital property equitably under the Maryland Code, Family Law Article, §§ 8-201 through 8-213. Separate property is protected and not divided.

Marital vs. Separate Property

Marital Property (Subject to Division)

All property acquired by either or both spouses during the marriage, EXCEPT:

• Property excluded below
• Property acquired by gift from a third party to one spouse
• Property acquired by inheritance

Examples:

• Family home purchased during marriage
• Retirement contributions made during marriage
• Income earned during marriage
• Vehicles purchased during marriage
• Bank accounts funded during marriage
• Business interest grown during marriage

Separate Property (Not Divided)

• Property owned before marriage
• Property acquired by gift to one spouse (from anyone other than the other spouse)
• Property acquired by inheritance
• Property specifically excluded by a valid prenuptial agreement

Commingling: If separate property is mixed with marital property so they cannot be distinguished, the entire asset may be treated as marital. Maintain separate accounts for separate assets.

Equitable Distribution — The Factors

Maryland courts apply equitable distribution — fair, not necessarily equal. Factors include:

1. Contributions (monetary and non-monetary) of each party to the well-being of the family
2. Value of all property interests of each party
3. Economic circumstances of each party at the time of the award
4. Circumstances that contributed to the estrangement of the parties
5. Duration of the marriage
6. Age of each party
7. Physical and mental condition of each party
8. How and when specific marital property was acquired
9. Contributions by either party to the education, training, or increased earning power of the other
10. Opportunity of each party for future acquisition of capital assets and income
11. Desirability of awarding the family home or right to live there for reasonable periods to whichever party has physical custody of any minor child

The Monetary Award

Maryland has a unique property division mechanism. Courts cannot actually transfer title to most property directly — instead, they:

1. Determine the total marital property value
2. Assign ownership of each specific asset to one spouse (generally confirmed to who already has it)
3. If the result is inequitable, order one spouse to pay a Monetary Award to the other to balance the division

The Monetary Award is a cash payment (or payment plan) from the spouse who received more marital value to the one who received less. This avoids forcing the sale of every asset.

Dividing the Family Home

Maryland courts can:

• Order one spouse to receive the home (with or without an offsetting monetary award)
• Order the home sold and proceeds divided equitably
• Award one spouse the right to use and possess the family home for a period (especially if minor children)

The Use and Possession Order allows the custodial parent to remain in the family home for up to 3 years after the divorce — even if the other spouse owns it. Courts can also award use and possession of personal property (furniture, vehicle).

Retirement Accounts

• Pension and employer plans (401k, 403b): QDRO required after the Judgment of Absolute Divorce
• IRAs: Transfer incident to divorce — no QDRO; direct transfer instruction
• Maryland state pension (Maryland State Retirement and Pension System): has specific QDRO-equivalent requirements

The marital portion of any retirement account is the portion earned during the marriage.

Alimony — Maryland's Three Types

Under Family Law § 11-106, Maryland recognizes:

Alimony factors (12 statutory factors):

1. Ability to be wholly or partly self-supporting
2. Time needed to gain education/training
3. Standard of living established during marriage
4. Duration of marriage
5. Contributions to family well-being
6. Circumstances contributing to estrangement
7. Age of each party
8. Physical and mental condition
9. Ability of paying spouse to meet own needs while paying
10. Financial needs of each party
11. Agreements between the parties
12. Financial resources of each party

Last reviewed: March 2026 | Family Law §§ 8-201 through 8-213 | Monetary Award mechanism | Use and Possession Orders available

Last reviewed: March 2026 · Verify current fees and forms with your local court before filing.