Divorce can become even more complicated when you have significant or complex assets to consider. Taking steps to separate your property before filing for divorce may help protect your financial interests and simplify the process.
Understanding Maryland’s property division laws is a helpful first step when deciding how to start separating assets.
Navigating equitable distribution in Maryland
Maryland follows the principle of equitable distribution when dividing property in a divorce. This means that marital property splits in a manner that is fair but not necessarily equal.
Marital property includes assets acquired during the marriage, such as real estate, vehicles, bank accounts and retirement funds. Separate property, on the other hand, includes assets owned before the marriage. These can include inheritances or gifts received by one spouse individually.
Identifying marital assets
Before filing for divorce, identify which assets are separate and which are marital. Gather financial records, including deeds, account statements and documentation of inheritance or gifts. These documents can establish ownership and clarify whether an asset is separate property.
In cases involving high-value or complex assets, such as businesses or investment portfolios, a professional evaluation may be necessary to determine their worth accurately.
Tracing commingled assets
Commingling happens when separate and marital funds mix together. This might happen if one spouse uses an inheritance to purchase a marital home, for example. Tracing these funds back to their source can help classify the asset as partially or fully separate.
Separating your property before a divorce requires careful planning and a thorough understanding of your assets. Taking proactive steps to clarify ownership can streamline the divorce process and help protect your financial future.