Divorce cases do not always move neatly from filing to a single final hearing. In a complex Maryland divorce, the parties may be ready to legally end their marriage while disputes involving marital property, business interests, retirement accounts, or other financial issues still require additional time to resolve.

In certain cases, the court may enter a divorce while expressly reserving specific property issues for later determination. This is sometimes referred to as bifurcation in a Maryland divorce.

Bifurcation can be useful, but Maryland’s rules governing unresolved marital property issues contain important deadlines. A decision to separate the divorce itself from remaining financial issues therefore requires careful planning.

What Does Bifurcation Mean in a Divorce?

In general, bifurcation means separating issues in a legal case so that they can be decided at different times rather than resolving everything in one proceeding.

In a divorce case, that can mean legally terminating the marriage while reserving certain unresolved issues for subsequent proceedings.

A Maryland divorce decree can address matters including alimony, division of marital property, child custody, and child support. In a complicated case, however, some issues may be ready for decision long before others.

For example, the spouses may have established grounds for divorce, but still disagree about:

  • Whether particular assets are marital or non-marital property
  • The value of a privately held business
  • The value or division of retirement benefits
  • Ownership interests in real estate
  • Whether assets have been dissipated
  • The appropriate amount of a monetary award
  • Other complicated financial claims

Rather than necessarily delaying the termination of the marriage until every property question has been resolved, Maryland law provides a limited mechanism for reserving certain marital-property determinations after divorce.

Maryland Law Allows Some Property Issues to Be Reserved After Divorce

One of the most important provisions governing this issue is Maryland Family Law § 8-203.

When there is a dispute about whether property is marital property, the court ordinarily determines that issue when it grants an absolute divorce. However, the statute also permits the court to make that determination within 90 days after the divorce when the divorce decree expressly reserves the court’s power to decide the issue.

An extension beyond that initial 90-day period is possible only if:

  • The divorce decree expressly reserved the issue;
  • During the initial 90-day period, the court extends the time for making the determination; and
  • The parties consent to that extension.

These requirements are significant. Bifurcation should not be treated as simply postponing financial issues indefinitely.

Maryland appellate courts have enforced these statutory limitations. In Heinlein v. Stefan, the Appellate Court of Maryland explained that a judge may retain jurisdiction over unresolved marital-property issues for 90 days when that reservation is expressly made in the divorce decree, but extending that period further requires the parties’ consent.

For someone considering a bifurcated divorce in Maryland, the wording of the divorce decree and management of these deadlines can therefore be extremely important.

Why Might a Maryland Divorce Case Need Bifurcation?

Bifurcation is generally most relevant when one portion of a divorce is ready for resolution but another requires substantially more work.

Complex Business Valuation

A spouse’s ownership interest in a closely held company can significantly complicate property division in a Maryland divorce.

Determining the marital component of a business may require:

  • Business valuations
  • Review of tax returns and financial statements
  • Expert testimony
  • Analysis of ownership agreements
  • Tracing of marital and non-marital contributions
  • Investigation of compensation and distributions
  • Examination of transactions involving related companies

These issues can require extensive discovery and expert analysis. When the parties otherwise qualify for divorce, unresolved questions involving a business may be one reason to consider whether issues can appropriately be handled separately.

Complicated Real Estate Holdings

Some marriages involve considerably more than a family residence. The parties may own:

  • Rental properties
  • Vacation homes
  • Commercial property
  • Investment real estate
  • Property acquired before marriage
  • Property purchased using a mixture of marital and non-marital funds

Maryland law generally defines marital property based on how and when property was acquired rather than simply whose name appears on the title. Maryland Courts specifically notes that marital property can include real estate, bank accounts, retirement accounts, vehicles, businesses, and other assets and that some property may be partly marital and partly non-marital.

Resolving those ownership and valuation questions may require appraisals, tracing, financial records, and expert testimony.

Retirement and Pension Issues

Retirement assets in a Maryland divorce can also create substantial complexity. Maryland Family Law § 8-204 generally requires courts to determine the value of marital property, although special provisions apply to pensions, retirement plans, profit-sharing plans, and deferred-compensation plans.

Dividing these assets may involve determining the marital portion of a benefit, evaluating pension rights, preparing specialized retirement orders, and deciding whether benefits should be distributed on an “if, as, and when” basis.

Extensive Financial Discovery

Sometimes the primary obstacle is not the nature of the assets but obtaining reliable information about them.

A high-asset Maryland divorce may require discovery concerning:

  • Bank and investment accounts
  • Business records
  • Tax returns
  • Stock options or other compensation
  • Real estate
  • Trust interests
  • Retirement accounts
  • Loans between family members
  • Transfers to third parties
  • Alleged hidden assets
  • Alleged dissipation of marital property

Financial discovery can take months, particularly when records are incomplete or one party challenges the other party’s disclosures.

One Spouse Wants to Remarry

Once a Maryland absolute divorce is finalized, the former spouses may remarry. Accordingly, the desire to terminate marital status without waiting for every remaining financial issue to be litigated can sometimes be part of the practical discussion surrounding bifurcation.

That consideration does not eliminate the need to protect unresolved property rights. Whether separating the issues is legally available and strategically appropriate depends on the circumstances of the particular case.

How Marital Property Is Divided in Maryland

Understanding bifurcation also requires understanding Maryland’s marital property division process. Maryland follows an equitable framework rather than simply dividing every marital asset 50/50.

In broad terms, the court must first determine which disputed property qualifies as marital property. Maryland Family Law § 8-204 then generally requires the court to determine the value of marital property. After those determinations, § 8-205 allows the court to make a monetary award or certain authorized property transfers to adjust the parties’ equities and rights in marital property.

When deciding the amount and method of a monetary award, Maryland law directs the court to consider factors including:

  • Each spouse’s monetary and nonmonetary contributions to the family
  • The value of each spouse’s property interests
  • Each party’s economic circumstances
  • The circumstances contributing to the parties’ estrangement
  • The duration of the marriage
  • The parties’ ages
  • Certain physical and mental condition considerations
  • How and when particular marital property was acquired
  • Certain contributions of non-marital property
  • Any alimony award
  • Provisions concerning the family home and family-use personal property
  • Other factors the court considers necessary or appropriate to reach a fair and equitable result

This interconnected process is one reason a Maryland divorce attorney should carefully evaluate which issues can safely be separated and which should be considered together.

Bifurcation Can Create Important Timing Issues

The 90-day provision in Maryland Family Law § 8-203 is one of the most important considerations when discussing bifurcation. Suppose the court enters an absolute divorce on June 1 but has not yet determined whether several disputed assets are marital property.

The decree must expressly reserve the court’s authority to make that determination for the statutory reservation procedure to apply. The statute permits the determination within 90 days after the divorce. Extending the matter beyond that period requires an extension during the 90-day period and the consent of the parties.

That makes bifurcation significantly different from simply telling the court, “We will deal with the property later.”

The unresolved issues, applicable deadlines, language of the decree, and procedural requirements should be identified carefully before the divorce is entered.

Potential Benefits of Bifurcating a Maryland Divorce

When appropriate, resolving marital status before every remaining issue can have practical advantages. It may allow the parties to end a marriage without having the legal status of the marriage remain unresolved solely because complicated property litigation continues.

It may also narrow the remaining litigation. Instead of continuing to litigate whether the parties should be divorced along with every financial issue, the parties and court may be able to focus subsequent proceedings on the unresolved matters.

In some cases, that can make the remaining dispute more focused. But these potential benefits must be weighed against the legal and financial consequences of entering the divorce before all related matters have been decided.

Potential Risks of Bifurcation

A request to bifurcate should not be made solely because one party wants the divorce completed quickly.

Missing Critical Property Deadlines

The most obvious risk involves the statutory deadlines governing unresolved marital-property determinations.

If the decree does not properly reserve an issue or the parties fail to address the applicable deadline, important property rights may be affected. Maryland appellate decisions demonstrate that these timing requirements have real consequences.

Financial Issues May Be Interconnected

Property division does not always exist in isolation. For example, Maryland Family Law § 8-205 specifically requires the court to consider any award of alimony when determining a monetary award. It also directs the court to consider the parties’ economic circumstances and provisions involving the family home and family-use property. Separating interconnected issues can therefore require careful consideration.

A Divorce Can Change Legal and Financial Relationships

Finalizing a divorce changes the parties’ legal status. Depending on the circumstances, that change may have implications involving insurance, taxes, estate planning, property ownership, beneficiary designations, retirement benefits, and other financial matters. Those potential consequences should be evaluated before seeking an early divorce decree.

Additional Proceedings Can Increase Costs

Bifurcation does not make the unresolved disputes disappear. If significant financial issues remain, the parties may still need additional discovery, expert analysis, negotiations, motions, and court proceedings. In some cases, separating issues could result in more than one substantial hearing.

The relevant question is therefore not simply whether bifurcation can accelerate the divorce itself, but whether it makes sense within the overall litigation strategy.

Bifurcation Is Not the Same as an Uncontested Divorce

A bifurcated divorce should also be distinguished from an uncontested divorce. In an uncontested divorce, the parties generally have resolved the relevant issues or do not have disputes requiring the court to decide them.

In a bifurcated case, significant disputes may remain. The difference is that the court resolves one portion of the case while reserving another issue for later proceedings.

This distinction is particularly important in high-asset divorce cases, where both spouses may agree that the marriage should end but remain far apart on the division or valuation of substantial assets.

What About Divorce by Mutual Consent?

Maryland currently recognizes three grounds for absolute divorce: six-month separation, irreconcilable differences, and mutual consent. The mutual-consent ground has an important limitation when discussing unresolved issues.

To obtain a divorce based on mutual consent, Maryland Family Law § 7-103 requires the parties to execute and submit a written settlement agreement resolving all issues relating to alimony, property distribution, and the care, custody, access, and support of minor or dependent children. Therefore, a case involving unresolved financial disputes does not fit the mutual-consent framework simply because both spouses agree that they want to be divorced.

Another available ground and the procedural circumstances of the case may need to be considered.

Does the Court Have to Bifurcate a Divorce?

A party’s desire to resolve marital status first does not automatically mean the court will or should separate the issues. Whether issues can appropriately be handled separately depends on the legal claims, the procedural posture of the case, the unresolved matters, and the potential consequences to each party.

A Maryland divorce lawyer considering bifurcation should therefore look beyond whether ending the marriage early would be convenient. The more important questions include:

  • Which issues are actually ready for final determination?
  • Which issues remain unresolved?
  • Does the court have sufficient evidence to grant the divorce?
  • Are marital-property determinations still outstanding?
  • Has the decree properly reserved those issues?
  • Can the remaining property questions realistically be resolved within the statutory timeframe?
  • Would separating the issues affect alimony or other financial claims?
  • Are expert valuations or additional discovery still required?
  • Would either spouse suffer financial or legal prejudice?
  • Does bifurcation make the litigation more efficient or simply create another proceeding?

When Bifurcation May Make Sense in a Maryland Divorce

There is no universal answer. Bifurcation may warrant consideration when the parties clearly qualify for divorce and the primary unresolved matters involve complex financial issues that require additional discovery, valuation, or litigation. It may be particularly relevant in cases involving:

  • High-net-worth divorce
  • Closely held businesses
  • Multiple real estate holdings
  • Complex retirement assets
  • Significant disputes over marital versus non-marital property
  • Extensive financial discovery
  • Asset tracing
  • Complicated valuation disputes

In a simpler divorce where all issues can reasonably be resolved together, separating the proceedings may offer little practical benefit.

Frequently Asked Questions About Bifurcated Divorce in Maryland

What is a bifurcated divorce in Maryland?

Bifurcation generally refers to resolving portions of a divorce case separately. In Maryland, one important example involves entering an absolute divorce while expressly reserving certain marital-property determinations for a limited period under Family Law § 8-203.

Can you get divorced before property is divided in Maryland?

Maryland law allows certain disputed marital-property determinations to be made after the absolute divorce if the court expressly reserves its authority in the divorce decree. The initial statutory period is 90 days, with additional requirements applying to an extension beyond that period.

How long can property issues remain open after a Maryland divorce?

Under Family Law § 8-203, a court can determine disputed marital-property status within 90 days after divorce if the decree expressly reserves that authority. An extension beyond 90 days requires the court to extend the deadline during the initial 90-day period and requires the parties’ consent.

Why would someone want to bifurcate a divorce?

The issue commonly arises when the parties are ready to terminate their marriage but complicated financial matters require additional time. Examples can include business valuation, real estate disputes, retirement benefits, asset tracing, and other complex marital property disputes.

Can a business valuation delay a Maryland divorce?

A dispute involving a privately held business can substantially increase the financial discovery and expert analysis required in a divorce. Whether the divorce itself must wait depends on the circumstances and how the court handles the unresolved issues.

Can I remarry after the divorce if property issues are still unresolved?

An absolute divorce terminates the marriage, and Maryland Courts states that former spouses may remarry after the divorce is finalized. However, unresolved financial claims and the consequences of remarriage should be discussed with counsel before proceeding.

Is bifurcation right for every high-asset divorce?

No. The fact that a divorce involves substantial assets does not necessarily mean the case should be bifurcated. The advantages, deadlines, unresolved claims, financial consequences, and possibility of additional litigation should all be evaluated before requesting separate resolution of issues.

Talk to a Maryland Divorce Attorney About Complex Property Issues

A complex Maryland divorce may involve far more than ending a marriage. Business interests, real estate, investments, retirement benefits, and disputes over marital and non-marital property can require extensive investigation and careful litigation strategy.

When some portions of a divorce are ready for resolution while others are not, determining whether to pursue bifurcation requires particular attention to Maryland’s property laws and procedural deadlines.

Attorney Bill Blackford represents clients in Maryland divorce and family law matters, including high-asset divorce, marital property disputes, business valuation issues, retirement asset division, and contested divorce litigation.

With offices serving Baltimore County, Anne Arundel County, and clients throughout the Baltimore and Washington, D.C. metro areas, Blackford Law provides experienced counsel for complicated Maryland divorce matters.

Contact Blackford Law at (410) 647-6677 to discuss your Maryland divorce and the financial issues involved in your case.