Protecting Separate Property in Maryland

Maryland is an equitable distribution state—courts divide marital property fairly under FL § 8-201 through a three-step process: classify, value, and award. There's no automatic 50/50 split; "equitable" means fair, not equal. The good news? Nonmarital property stays with its owner—but only if you can directly trace it. Whether you're heading into an uncontested or contested divorce, understanding the source-of-funds theory, tracing requirements, and 11 statutory factors is essential.

What Qualifies as Nonmarital Property in Maryland?

Under FL § 8-201(e), nonmarital (separate) property includes:

• Premarital assets: Property you owned before your wedding date
• Gifts and inheritances: Property acquired by gift or inheritance from a third party
• Property excluded by agreement: Assets covered by a valid prenuptial or postnuptial agreement
• Directly traceable property: Assets purchased with or from the proceeds of nonmarital property

Key point: Property acquired during marriage is presumed marital. The spouse claiming nonmarital status bears the burden to directly trace the asset to an excluded source.

The Source-of-Funds Theory: Maryland's Unique Approach

Maryland rejects "inception of title" and "transmutation by title" approaches. Instead, under the Harper v. Harper doctrine, classification follows the source of each contribution to acquire an asset:

• Proportional allocation: When both marital and nonmarital funds are used, the property is part marital and part nonmarital in proportion to contributions
• Appreciation shares proportionally: Each component (marital and nonmarital) shares proportionally in the property's appreciation
• Principal payments matter: Mortgage principal reduction from marital earnings increases the marital share

Example: If you contributed $50,000 of premarital funds and $50,000 of marital funds to buy a home, each portion owns 50% of the equity and appreciation.

Direct Tracing: Maryland's Strict Requirement

Maryland courts require direct documentary tracing to prove nonmarital status. The Noffsinger, Golden, and Melrod cases establish:

• Direct tracing only: You must show a clear paper trail from the nonmarital source to the current asset
• No proportionate tracing: Maryland explicitly rejects "proportionate" or "income ratio" tracing methods
• Commingling consequences: If marital and nonmarital funds are mixed so tracing becomes impossible, the entire asset is treated as marital

This means meticulous record-keeping is your primary protection strategy in Maryland.

No Separation Date Cutoff: The Acquisition Period

Unlike many states, Maryland has no date of separation cutoff for property classification. The marital acquisition period runs until the divorce is final:

• Income after separation: Wages earned after physical separation but before divorce are still marital property
• Post-separation assets: Property acquired after separation but before divorce can be marital (though courts weigh "how and when acquired")
• Valuation date: Assets are valued as of the divorce date, not separation date

The Alston v. Alston case confirmed that even lottery winnings 18 months after separation are marital—though courts can give "heavy weight" to how and when the asset was acquired.

Tenants by the Entireties: Special Rule

Maryland has a unique statutory carve-out: real property held as tenants by the entireties is marital by statute—regardless of nonmarital contributions:

• Always marital: The entireties interest is classified as marital property under FL § 8-201(e)(2)
• Contributions considered later: Nonmarital contributions to acquiring entireties property are weighed under FL § 8-205(b)(9) when fashioning the award
• Not dollar-for-dollar: Courts can tilt the monetary award but don't automatically "reimburse" the contributing spouse

Crawford Credits: Post-Separation Contributions

Under the Crawford v. Crawford doctrine, a spouse who pays carrying costs on jointly-owned property after separation may receive contribution credit:

• Eligible costs: Mortgage principal and interest, taxes, insurance, and necessary repairs
• Must be from nonmarital funds: Payments from joint marital accounts don't qualify
• Offset for exclusive use: Courts reduce credits if the paying spouse also had exclusive occupancy
• Discretionary: Crawford credits are not automatic—they're subject to equitable considerations

Estimate Your Maryland Divorce Costs

Property disputes can significantly increase divorce costs, especially when forensic tracing is needed. Maryland filing fees are typically $165. Use our calculator to estimate your total expenses:

Practical Protection Strategies

• Keep separate property separate: Don't deposit inheritances into joint accounts
• Document the source: Bank statements, gift letters, and estate documents proving origin
• Avoid entireties title: Jointly titling property as tenants by the entireties makes it marital by statute
• Track contributions: Document who paid for improvements, principal reduction, and maintenance
• Get expert help early: For significant separate property, consult a forensic accountant

Key Takeaways

• Equitable distribution applies: Fair division through a three-step process, not automatic 50/50
• Source-of-funds controls: Classification follows the source of each contribution (Harper)
• Direct tracing required: No proportionate or income-ratio methods accepted
• No separation cutoff: Marital property accrues until the divorce is final
• Entireties is always marital: But nonmarital contributions are considered in the award

For the complete Maryland property division guide and divorce timeline, see our detailed resources. For official court forms, visit Maryland Courts Divorce Resources.