Maryland

Divorce and the House: What Happens First in Maryland?

Gather the paperwork first. Collect the deed, mortgage statements, tax bill, insurance, and closing statement. Get a payoff figure from every lender and one neutral valuation. List who pays what. Hire your own attorney. Do not move out or sign anything before you have a plan. Maryland Family Law Article section 8-205 contains no 50/50 rule.

By Marc Cormier

Licenses: Maryland #620443 | Virginia #0225175181 | DC #SP98365998 | Berkshire Hathaway HomeServices

27+ years in real estate. 800+ closed transactions.

Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.

Last updated: October 2, 2026

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What do you do first about the house?

Work in a fixed order. Gather documents, get payoff figures, get one neutral valuation, list who pays what, then compare your options. Do not move out or sign anything until you have a plan.

The first 30 days are about information. You are not deciding yet. You are building the file that lets you and your attorney decide with real numbers. I have seen people skip this step and argue for months over guesses.

Which documents do you gather?

Gather six documents first. Each one answers a question you will face later.

Document	Why it matters	Where to get it
Deed	Shows who holds title and how	Your closing file, or ask your title company or attorney
Mortgage statements	Show the lender, the balance, and the monthly payment	Your lender's online account, your mail, or a call to the lender
Payoff letter for each loan	Gives the exact amount to clear each loan on a stated date	A written request to each lender
Property tax bill	Shows the yearly tax cost you carry	Your mail or your email
Homeowners insurance policy and bill	Shows the coverage and the yearly cost	Your insurance agent or your online account
Closing statement from the purchase	Shows the price, the down payment, and the closing costs	Your closing file, or ask your title company or attorney

Add any second mortgage or home equity line, any HOA bill, and any written agreement about the home. Bring copies to your first meeting. Keep the originals in one folder.

Maryland Family Law Article section 8-201 defines marital property as property, however titled, acquired by one or both parties during the marriage. The name on the deed does not settle the question. The closing statement and your bank records matter for that reason.

Why get payoff figures and one neutral valuation?

Equity is the home's value minus every loan secured by it. You need both inputs before any option makes sense. A statement balance is not a payoff. Interest accrues and fees apply.

Ask each lender for a payoff letter. Then agree with your spouse on one neutral valuation. Two opinions give each spouse a number to defend. One shared number ends the argument. Agree in writing on a tiebreak rule if two values differ.

Made-up numbers.

Line	Amount
Home value	$600,000
First mortgage payoff	minus $250,000
Home equity line payoff	minus $50,000
Equity	$300,000

Check the math: $600,000 minus $250,000 is $350,000. Minus $50,000 is $300,000. One forgotten loan changes the equity by $50,000.

Who pays what while the divorce is pending?

List every cost, who pays it today, and how much. Write the list down before you change anything.

Made-up monthly costs.

Cost	Monthly amount
Mortgage payment	$2,400
Property tax	$600
Homeowners insurance	$150
Utilities	$350
Total carrying cost	$3,500

Check the math: $2,400 plus $600 is $3,000. Plus $150 is $3,150. Plus $350 is $3,500.

Time adds up. At $3,500 a month, the house costs $10,500 over 3 months. It costs $14,000 over 4 months. It costs $21,000 over 6 months.

Months the house carries	Math	Total cost
3	$3,500 x 3	$10,500
4	$3,500 x 4	$14,000
6	$3,500 x 6	$21,000

Maryland Family Law Article section 8-208(c) says the court is allowed to order either or both parties to pay the mortgage or rent, related indebtedness, maintenance, insurance, assessments, taxes, or similar expenses. Until an order or a written agreement says otherwise, keep paying what you pay now and keep proof of every payment. Ask your attorney how to handle the records.

What are your five options for the house?

You have five options. Sell, buy out, keep and wait, ask for use and possession, or let the court decide. Compare them in writing with the numbers from your file.

1. Sell. Both owners sell and split the net proceeds. Run a net sheet first, because selling costs come out before anyone is paid.

2. Buyout. One spouse keeps the home and pays the other for the other's share. Ask your lender whether you qualify on your own income and what the closing costs are.

3. Keep and wait. Neither spouse changes title or the loan yet. Put the carrying costs and a decision date in writing. Waiting has a price, as the table above shows.

4. Use and possession. Maryland Family Law Article section 8-208(a)(1) says the court is allowed to decide that one party has sole possession and use of the family home, or to divide possession and use between the parties, regardless of how the home is titled. Section 8-208(a)(2) says the court is allowed to exercise these powers while the case is pending. The court considers the best interests of any child, each party's interest in continuing to use the home, and any hardship.

5. Court decides. Maryland Family Law Article section 8-205(a)(1) says the court is allowed to transfer ownership of an interest in property, grant a monetary award, or both. Section 8-205(a)(2)(iii) covers a jointly owned principal residence. The court is allowed to order a transfer to the other party if that party obtains release from the liens, to authorize a purchase of the other party's interest on court terms, or to do both.

If keeping the home does not work, here is how a divorce sale runs.

What this means for your house

Section 8-201 treats property acquired during the marriage as marital, however titled.
Section 8-205 contains no 50/50 rule. Your agreement or the court sets the split.
Section 8-208 lets the court decide who lives in the home while the case is pending.
Get the numbers first. Choose the option second.
Ask your attorney and your tax professional before you sign anything.

Why get your own attorney before you decide?

Each spouse needs their own attorney. You and your spouse have different interests in the house. One attorney does not protect both of you.

I am a REALTOR®. I do not give legal or tax advice, and I do not recommend one attorney over another. Ask your attorney what applies to your case before you move, sign, list, or stop paying any bill. Bring the document folder to the first meeting.

What is the 30-day checklist?

Work down this list in order. Mark each step done or not done.

1. Gather the deed, mortgage statements, tax bill, insurance policy, and closing statement.

2. Request a payoff letter from every lender, including any second mortgage or home equity line.

3. Agree with your spouse on one neutral valuation and a tiebreak rule.

4. List every carrying cost, who pays it today, and the monthly total.

5. Multiply the monthly total by 3, 4, and 6 months.

6. Compare the five options in writing: sell, buyout, keep and wait, use and possession, court decides.

7. Hire your own attorney and bring the folder.

8. Do not move out or sign anything before you have a plan.

Where this goes wrong

I have seen this mistake before. One spouse moves out in anger and leaves the other holding every bill. Or one spouse signs a paper to end an argument and learns the cost later. Both mistakes happen before anyone has a plan.

Starting with the fight over who gets the house instead of the numbers.
Using the statement balance instead of the payoff.
Forgetting a second loan. A $50,000 home equity line changes the equity by $50,000.
Using two different home values and arguing about both.
Ignoring the monthly carrying cost. At $3,500 a month, six months costs $21,000.
Leaving the home with no written terms for the mortgage, taxes, insurance, and repairs.
Signing before your attorney has read it.
Assuming half is the law. Section 8-205 lists factors and contains no even-split rule.

This is where people usually get hurt. They act first and plan later.

Local note for Montgomery County: The Montgomery County Circuit Court runs a Family Law Self-Help Center. It is a free walk-in clinic staffed by attorneys, in the South Tower, First Floor, Room 1500. It gives general legal information or limited legal advice on divorce, custody, and related matters. You still pay case fees and costs. Source: https://www.montgomerycountymd.gov/circuit-court/services/family-law-self-help-center

Questions about the first steps with the house in a Maryland divorce

What should I do first about the house when a divorce starts?

Gather the documents, then get payoff figures and one neutral valuation. Write down who pays each cost today. Hire your own attorney. Then compare the five options in writing: sell, buyout, keep and wait, use and possession, or a court decision. Do not move out or sign anything before you have a plan.

What should I bring to the first meeting about the house?

Bring paper. Bring the deed or title information, the closing statement from your purchase, your latest mortgage statement, records of the down payment source, and records of money put into the house. Add any prenuptial, postnuptial, or written agreement about the home, your tax bill, insurance bill, HOA dues, and any appraisal.

Should I move out?

Talk to your attorney before you move. Section 8-208(b) tells the court to consider each party's interest in continuing to use the home as a dwelling. If you leave, get the terms in writing first. Cover the mortgage, taxes, insurance, repairs, showings, and the date the house is listed.

Is Maryland a 50/50 state?

No. Family Law Article section 8-205 contains no 50/50 rule. The court weighs eleven factors, including each spouse's contributions, the value of all property interests, economic circumstances, how long the marriage lasted, ages, physical and mental condition, and how and when the property was acquired. Spouses who agree set their own split in writing.

Can the court transfer the house to one spouse?

Yes, for a jointly owned home used as the principal residence. Section 8-205(a)(2)(iii) lets the court order a transfer to the other spouse if that spouse obtains release from the liens. The court is also allowed to authorize a buyout on terms it sets, or to do both. Lien terms apply. Ask your attorney how this works on your deed.

What is a payoff letter?

A payoff letter is a written statement from the lender that shows the exact amount needed to pay off the loan on a stated date. It differs from the statement balance because interest accrues and fees apply. Example: $250,000 balance plus $1,050 interest plus $150 late fee equals $251,200.

What does it cost to carry the house while it sits unsold?

Carrying cost is the monthly total of the mortgage payment, taxes, insurance, and utilities. In a made-up example at $3,500 a month, four months cost $14,000 and six months cost $21,000. Your number depends on your loan and your house. Add it up before you list.

Do you need a divorce attorney?

You should have your own. I am a real estate agent. I do not give legal advice, and I do not work for one spouse against the other.

I am not affiliated with any law firm. I do not recommend one attorney over another. Your spouse needs their own attorney, not yours.

If you need to find one, start with the bar association referral services:

Links open in a new tab.

What an attorney handles	What I handle
Who gets the house and the money	The value of the house
The marital settlement agreement	The net sheet
Court orders that affect the sale	Listing, showings, offers, and closing
Custody, support, and everything outside real estate	A written record of every showing and decision

General information only. Not legal, tax, or financial advice. The referral services are independent of me. I do not guarantee any attorney's work or results.

About the Author

Marc Cormier