In many divorce cases, the marital home is a couple’s most important asset. A judge will often award the home to one spouse. The receiving spouse may then have to pay a “monetary award” to the other spouse–in effect buying out their interest in the marital home. However, such a monetary award is not automatic. The judge has the discretion to require, or not require, such an award based on all of the facts and circumstances of a particular case.

Court Upholds Judgment in Favor of Ex-Wife Who Made Most of the Financial “Contributions” to Purchase, Maintenance of Home

For example, the Maryland Court of Special Appeals recently issued an unpublished decision, Stokes v. Stokes, upholding a trial court’s decision not to require a monetary award in a divorce judgment awarding the marital residence to the former wife. The husband and wife in this case married in 2015. They separated in 2018.

Prior to the marriage, both parties signed a rent-to-own agreement that led to them acquiring ownership of a home in Caroline County. The property required substantial renovations, which were funded entirely by the wife’s father. The wife also testified that she made the rental payments using her own funds and contributions from other relatives who also lived in the house. She said the husband never contributed any money towards the rent, although he disputed this at trial. In any event, after all of the requisite rental payments were made, title to the home was transferred to both husband and wife. The wife subsequently said she paid the property taxes and the majority of the household bills.

The husband asked the court to order a sale of the house. The wife objected. Instead, she requested the court award her the home and that the husband was not entitled to any monetary award for his share as he “did not make any contributions” except for paying a couple of bills. The trial court ultimately granted the wife’s request.

The husband appealed. But the Court of Special Appeals saw no legal error in the trial court’s ruling. When deciding how to transfer real property in a contested divorce, Maryland courts are required to consider a number of factors, including the financial and other “contributions” made by each party to the home. Here, those factors weighed heavily in favor of the wife. She was “primarily responsible for the acquisition of the property,” the Court noted. The trial court also credited the wife’s testimony that the husband contributed little to the ongoing taxes and maintenance of the home. Under these circumstances, the trial court was not required to order a monetary award to the husband. Put another way, the law did not require the wife to “purchase” her husband’s 50 percent share of the marital home as a condition of the divorce.

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This article has been provided by the Law Office of Robert Castro. For more information or questions contact our office to speak to an experienced lawyer at (301) 870-1200.

Source:

https://www.courts.state.md.us/sites/default/files/unreported-opinions/0118s21.pdf