Maryland Court Upholds Uneven (But Equitable) Distribution Of The Marital Estate

Maryland is an equitable distribution state. This means that the assets attached to your marital estate are divided in accordance with what is fair. It also means that the marital estate isn’t always divided evenly. In some cases, the courts will see fit to favor one spouse or the other with a larger share. In the case of Ledbetter v. Ledbetter, the Maryland Court of Special Appeals reaffirmed a key Maryland family law principle: “equitable” does not always mean “equal”. The case illustrates that Maryland trial courts have broad discretion to divide marital property in a way that achieves “fairness”. In this article, we’ll discuss the case and how it applies to Maryland family law.

Background of the case 

In this case, the parties were married for over a decade prior to filing for divorce. Their case involved substantial disputes over monetary awards and property distribution. The parties owned several marital assets, retirement accounts, vehicles, and real property. During their trial, the circuit court made detailed findings concerning the value of each of their assets and the contributions that each party made during the marriage.

When the final judgment was entered, the trial court divided the marital estate unevenly. Certain assets were divided evenly, but others were divided unevenly. The court awarded the wife a $50,000 monetary award to balance the equities between both parties. The husband appealed, arguing that the court’s division was unfair and exceeded the total value of the marital property.

Understanding how Maryland divides property 

Under Maryland Family Law § 8-205, courts are required to follow a three-step process when they divide the marital estate:

• Identify all marital property
• Value each asset
• Adjust equities by transferring property or making a monetary award

Unlike other states that operate on a theory of community property, Maryland does not require a 50/50 division. Instead, it allows for equitable distribution based on multiple factors. These factors include the length of the marriage, contributions by both parties, the parties’ economic circumstances, and how and when the property was acquired.

The appeal 

In this case, the Court of Special Appeals rejected the husband’s arguments and affirmed the trial court’s decision. The appellate court found that the circuit court properly applied the statutory framework and supported its conclusions with factual findings. Just because one spouse received a greater share of the marital estate, it didn’t make the decision an error.

Importantly, the court emphasized that Maryland law “does not presume” equal division. The goal of the courts is fairness, not equality. The trial judge had wide discretion to weigh factors such as the wife’s financial need, the husband’s earning capacity, and the contributions of both spouses to the marriage.

Talk to a Bel Air, MD, Family Law Attorney Today 

Schlaich & Thompson, Chartered, represents the interests of Bel Air, MD, residents during their divorce. Call our Bel Air family lawyers today to schedule an appointment, and we can begin representing your interests right away.

Source:

law.justia.com/cases/maryland/court-of-special-appeals/2022/1161-20.html