What Are the Procedures for a Trustee Divorce Sale in Maryland?

By Jennifer Williams

Property owned jointly by Maryland spouses is subject to equitable distribution in divorce. If spouses cannot reach a mutually agreed-upon property settlement agreement, the court may order the jointly owned property sold and proceeds divided. Often the court appoints a trustee as an impartial third party to oversee the sale.

Step 1

Negotiate with your spouse to arrive at a mutually agreed-upon property settlement agreement. This might involve one spouse buying the other out of assets, such as the marital home. If you cannot reach an agreement, identify the jointly owned property that must be divided between you.

Step 2

Petition the circuit court in which your divorce is proceeding for an order directing the jointly owned property to be sold. Ask the court to order the proceeds divided equally between you and your spouse and appoint a trustee to oversee the sale. You also have the option of asking the court to award you a greater share of the property, based on the individual circumstances of your case. Alternatively, you may ask the court to allocate the proceeds along with all other property in the final divorce decree.

Divorce is never easy, but we can help. Learn More

Step 3

Obtain a blank trust document from the Maryland Court of Appeals website or an online legal document provider. Fill in the blanks with the requested information to create a trust. You can also hire a lawyer to help you complete the document. The name of the court-appointed trustee, your names and a list of property to be transferred into the trust are generally required. Transfer property to the trust by deeding real property into the trustee's name and retitling any automobiles into the trustee's name.

Step 4

Wait for the trustee to sell the trust property. Compensate the trustee with a percentage of the proceeds from the trustee sale. Divide the remaining proceeds equally between you and your spouse.

Divorce is never easy, but we can help. Learn More
How to Transfer a Living Trust to an Individual


Related articles

Appointing a Bank as a Trustee

Many people may consider hiring a bank to act as a trustee instead of appointing a relative or friend to manage their financial affairs. A bank may have more experience managing property and would be more likely to manage the trust’s assets impartially and professionally. The downside of using a bank as a trustee is that it charges a fee for its service. Also, the creator of a trust may want someone with whom he has a personal connection to oversee the trust property.

How to Distribute the Remainder of a Trust at the Death of the Income Beneficiary

When an individual wants to maintain his property without retaining legal ownership of it, he may create a trust and transfer ownership of his property into it. He then names a beneficiary to receive income generated by the property placed in the trust, such as rents generated from rental property or dividends from stock. Transferring property into a trust removes it from the estate of the trust creator, or settlor, thus keeping it from getting tied up in probate upon the settlor's death. When the beneficiary dies, the trust property must be distributed according to the terms of the trust.

How to Create a Valid Living Trust in Illinois

A living trust can allow the creator of the trust to use the trust property during his lifetime, and when the creator dies, the trust assets can be immediately transferred to the creator’s beneficiary without the property having to go through probate. To create a valid living trust in Illinois, you need to draft a declaration that establishes the terms of the trust and all of the relevant parties. This declaration does not need to be filed with a court or clerk for the trust to be valid.

Get Divorced Online

Related articles

How to Transfer Title to Revocable Trust

A revocable trust is useful largely because it avoids probate proceedings after the death of a settlor. Assets titled ...

Can a Property Owned by an Irrevocable Trust Be Foreclosed?

A living trust is an estate planning tool used to transfer property at death, allowing probate to be avoided. When you ...

What if My House Is Not Paid for: Can I Put It in My Living Trust?

A living trust is an estate planning tool that acts as a holding area for property. A grantor -- the legal term for a ...

How to Name a Living Trust

A living trust is a plan in the form of an agreement that manages all the property you place into the trust while ...

Browse by category
Ready to Begin? GET STARTED