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Maryland is an equitable distribution state, i.e. marital property is divided by the court in a fair and equitable manner. Each party will not necessarily receive 50% of the marital property. To make the distribution, the court must first decide what property is marital and determine its value.
Generally, each spouse can take out of the marriage separate property that he or she owned prior to the marriage, any appreciation such property acquired through gift, bequest, devise or descent. However, the appreciation of separate property due to active intervention and management by one of the spouses and gifts between spouses are marital property subject to equitable distribution.
All other property acquired by either party during the marriage is presumed to be marital property, regardless of how the property is titled. Property purchased with commingled marital and non-marital funds is considered entirely marital property except that part that may be traced to non-marital source. This rule known as the "source of funds" essentially allocates the property between separate and marital interests in proportion to the contribution of the separate and marital sources. Family Use Property; the court may award use of the family home and family use property to the custodial parent and the parties' natural or adopted children for up to three years.
Under the equitable distribution statute Md. Fam. Code §8-205(b): the court must :
1. Determine what property is marital property
2. Determine the value of the property
3. Where appropriate, transfer ownership of an interest from one party to either or both parties, grant a monetary award, or both.
1.The contributions, monetary and non-monetary, of each party to the well being of the family
2. The value of all property interest of each party
3. The economic circumstances of each party at the time the award is to be made
4.·The circumstances that contributed to the estrangement of the parties
5. The duration of the marriage
6. The economic circumstances and the age of each party
7. The physical and mental condition of each party
8. How and when specific marital property or an interest in pension deferred compensation, etc. was acquired including the effort expended by each party
9.· Contributions to acquisition of real property held as tenants by the entirety
10. Any award of alimony and any awards that the court has made as to the use and possession of the family home or personal property
11. Any other factors as the court deems necessary or appropriate to consider in order to arrive at a fair and equitable monetary award or transfer an interest in pension, retirement, profit sharing or deferred compensation.
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