As a Maryland Divorce Attorney, a recent news article on underwater mortgages has me thinking about how much the current economic downturn has created a new set of issues that is challenging divorcing couples. A Deutsche Bank Report last week predicts that 48% of homeowners will owe more than their homes are worth before the recession ends. The home may no longer be a major plus in the overall disposition of assets. Today, it is often a potential liability that requires nimble market savvy.
Many of us who live in the relatively prosperous areas of Howard, Anne Arundel, Baltimore and other affluent counties in the Baltimore-Washington Corridor are probably looking at a more promising picture. Even if you are one of the more fortunate homeowners that still have equity in your home, the downturn can have important consequences.
“ Taking out a second mortgage, a cash-out refinancing or equity line of credit can have important consequences under the Act.
Taking out a second mortgage, a cash-out refinancing or equity line of credit can have important consequences under the Maryland Marital Property Act. If divorce might be in your future, consider consulting an attorney on how any of these transactions could affect you in the ultimate property disposition.
In general the Maryland Marital Property Act recognizes marriage as a partnership and is designed to give a court power to “balance the equities” between the parties as it relates to property acquired by either party during the course of the marriage. Once a divorce appears on the horizon, it is never too early to confer with an experienced divorce attorney to understand how your rights under this complex statute might be affected by actions that you or your spouse may be planning.