Gifts and Pre-Marital Assets As Marital Property

The Marital Property Act” (“Act”). Section 8-201 defines marital property:

(e)(1) “Marital property” means the property, however titled, acquired by 1 or both parties during the marriage.

(2) “Marital property” includes any interest in real property held by the parties as tenants by the entirety unless the real property is excluded by valid agreement.

(3) Except as provided in paragraph (2) of this subsection, “marital property” does not include property:

(i) acquired before the marriage;

(ii) acquired by inheritance or gift from a third party;

(iii) excluded by valid agreement; or

(iv) directly traceable to any of these sources.

So what about an asset that appreciated during marriage but was acquired by gift or was pre-marital then can the other non owner spouse share in the post marriage appreciation as marital property. Well maybe yes. If either spouse used their efforts to help the asset gain value during marriage, then certainly yes it is marital property. However the value is marital property only to the extent you can prove the efforts produced the specific value. At least as it relates to stocks since it appears not to relate to trailer parks. Additionally or otherwise if the owner spouse was able to re-invest post marriage appreciation, such as for example dividends, from the assets then yes again as long as the non owner spouse can prove they maintained the household expenses which permitted the re-investment. But you can not share if the post marriage appreciation was purely passive. Meaning the assets gained value with no help from anyone or with out reinvestment of money otherwise needed and available to the owner spouse. For more information feel free to call my office or visit http://www.yourmarylandlawyer.com