Unequal But Equitable: Property Distribution In Maryland Family Law Cases

In Maryland, equitable distribution is used in divorce cases; that is, marital property is distributed in a fair (but not necessarily equal) manner. The courts must first locate and value all marital property and then determine whether a monetary award is needed for equitable distribution. In this article, the Bel Air, MD, family law attorneys at Schlaich & Thompson, Chartered, will discuss a real Maryland family law case in which the courts did not divide the marital estate evenly. 

Background of the case 

This case was the result of a divorce between two people who had been married for an extended period of time and had acquired considerable marital assets, including business interests. The majority of the assets were in the husband’s name and related to his business operations.

In this case, the circuit court, in its three-step analysis as required by Maryland law, classified the property as either marital or non-marital, the valuation of marital property, and determined the need for a monetary award to achieve equity. The court determined the business assets to be marital property and to have considerable value.

Since the husband had control and ownership of the business assets, the court could not order an equal distribution of the property in kind. Instead, the court ordered the wife to receive a considerable monetary award of $425,000 to offset the imbalance caused by the husband’s ownership of the assets, which produced considerable income. The distribution of the assets was uneven, but the court felt it was equitable under the circumstances. 

The appeal 

In this case, the husband appealed. He argued that the trial court abused its discretion in valuing the marital assets and in making the monetary award. He complained that the trial court overvalued the businesses and that the wife received an unjustly high percentage of the marital estate.

The Court of Special Appeals, however, upheld the trial court’s decision. The appellate court pointed out that Maryland law provides that trial courts have broad discretion in making determinations about marital property and in making monetary awards. The appellate court is not required to decide whether the trial court correctly evaluated the evidence, but whether the trial court’s decision was supported by the evidence and legally correct.

The court pointed out that the trial court did not have to make sure that the monetary award resulted in mathematical equality between the spouses, but that it had to reach a fair result in making the award, taking into consideration factors such as the length of the marriage, the contributions of each spouse, and the economic circumstances of both spouses. 

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

Schlaich & Thompson, Chartered, represent the interests of spouses during their divorce. Call our Bel Air family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.

Source:

casemine.com/judgement/us/5914ba8fadd7b049347919b7