Maryland Marital Property Laws for Debt Collectors & Judgment Creditors

⛩️ Maryland Marital Property: The Creditor’s Overview

Maryland is a common law property state governed by the Maryland Code. Maryland’s enforcement landscape mirrors Indiana’s in a key structural way: strong TBE protection for jointly held marital real estate combined with no general homestead exemption. The jointly held marital home is shielded from single-spouse creditors by TBE — but individually titled real property (investment properties, commercial real estate, property held solely in the debtor’s name) has zero homestead protection and is fully exposed above only modest personal property exemptions.

Maryland’s proximity to Washington, D.C. means a massive concentration of federal government employees, defense contractors, cybersecurity firms, and biotech companies in Montgomery County, Prince George’s County, and the Baltimore-Washington corridor. These high-income earners represent prime wage garnishment targets. Maryland’s 3-year statute of limitations on written contracts is among the shortest in the Mid-Atlantic — creditors must act quickly.

🔒 Tenancy by the Entirety — Strong TBE in Maryland

Maryland recognizes tenancy by the entirety for real property held jointly by married spouses (Md. Code, Real Prop. §4-108). A single-spouse judgment cannot be enforced against TBE real property — the marital unit is treated as a single indivisible owner. Maryland’s TBE is well-established and has been consistently enforced by courts.

🏠 No General Homestead Exemption — A Major Creditor Advantage

Maryland does not have a general homestead exemption protecting home equity from creditor claims. While the jointly held marital home is typically TBE-protected, when a debtor holds real property individually — investment properties, a home titled solely in the debtor’s name, commercial real estate — the full equity is encumbered by a judgment lien with no homestead offset whatsoever.

⚖️ Common Law Property Rules for Creditors

👩‍⚖️ Spousal Liability for Debts in Maryland

Maryland common law generally protects each spouse from the other’s individual debts. The non-debtor spouse’s separately held assets are not reachable for individual creditors. Maryland recognizes mutual liability for certain necessaries under the common law necessaries doctrine and Md. Code, Fam. Law §4-203.

• 📄Joint contracts — both spouses co-signed the obligation
• 🏥Necessaries doctrine — Md. Code, Fam. Law §4-203 creates mutual liability for family necessaries including medical care
• 💳Joint credit accounts — both spouses are named account holders
• 🏠Joint mortgage — both spouses signed promissory note and deed of trust
• 💼Joint business guarantees

💰 Maryland Wage Garnishment Rules

Maryland allows standard wage garnishment at 25% of disposable earnings following the federal CCPA framework. Maryland has no head-of-household exemption eliminating consumer wage garnishment. Maryland calls its procedure a “writ of garnishment of wages” served directly on the employer.

🏠 Judgment Liens on Maryland Real Property

Maryland judgment liens are created by recording a judgment in the land records of each county or Baltimore City where the debtor owns real property. Maryland’s lack of a homestead exemption means individually titled real property is fully encumbered from the first dollar of equity. Montgomery County, Howard County, and Anne Arundel County properties commonly hold $500,000–$2M+ in equity — making Maryland individually titled real estate among the most valuable lien targets in the Mid-Atlantic.

1. Obtain certified judgment — act before 3-year SOL expiresMaryland’s 3-year SOL on written contracts is among the shortest in the region. From the Circuit Court of the relevant county or Baltimore City Circuit Court. For out-of-state judgments, domesticate in Maryland Circuit Court under the Uniform Enforcement of Foreign Judgments Act (Md. Code, Cts. & Jud. Proc. §11-801 et seq.).
2. Record judgment in land records of each relevant county or Baltimore CityMaryland has 23 counties and Baltimore City as a separate jurisdiction (24 total recording jurisdictions). File in each jurisdiction where the debtor holds real property. Focus on individually titled property — no homestead protection means full equity is encumbered. TBE-protected jointly held marital property cannot be reached by a single-spouse judgment.
3. Target individually titled investment and commercial propertyMaryland debtors with investment properties, rental real estate, vacation properties, and commercial real estate individually titled have zero homestead protection. Montgomery County investment condos, Baltimore City row houses, and Annapolis commercial properties are fully exposed. Seek forced sale if debtor equity substantially exceeds judgment amount.
4. Renew before 12-year expirationMaryland judgment liens are valid for 12 years and renewable. The judgment itself (not just the lien) has a 12-year duration under Maryland law.

🏢 Bank Account Levies & Personal Property in Maryland

• 📋Obtain a writ of garnishment from the Circuit Court after judgment entry
• 🏢Serve writ on financial institutions to freeze and levy bank accounts
• 👥Joint bank accounts: debtor’s proportionate share reachable — Maryland TBE does NOT extend to bank accounts
• 💵Federal benefits: protected for 2 months of direct deposits under federal law (important: many MD debtors receive federal paychecks — these have deposit protection but wage garnishment separately available)
• 💰Non-wage deposits (rental income, business distributions, investment income) fully reachable without wage garnishment formula limits
• ✉️Federal employee wages ARE subject to federal pay garnishment procedures — consult counsel for OPM and agency-specific rules

🛡️ Maryland Property Exemptions

🔍 Skip Tracing Married Debtors in Maryland

Maryland’s 24 recording jurisdictions are dominated by the Baltimore-Washington corridor: Montgomery County (Rockville, Bethesda, Silver Spring, Germantown), Prince George’s County (College Park, Bowie), Howard County (Columbia, Ellicott City), Anne Arundel County (Annapolis, Severna Park, Odenton/Fort Meade), and Baltimore City and County. Maryland is one of the wealthiest states in the nation — extremely high average incomes and real estate values.

📋 Step-by-Step: Collecting from a Married Maryland Debtor

1. Act before Maryland’s 3-year SOL expiresMaryland’s 3-year SOL on written contracts is short for the Mid-Atlantic. File suit and obtain judgment promptly. For existing judgments, domesticate quickly via the Uniform Enforcement of Foreign Judgments Act. See our foreign judgment guide.
2. Identify TBE vs. individually titled real property across all 24 jurisdictionsRun a comprehensive land records search in all relevant Maryland counties and Baltimore City. TBE-protected jointly held marital property is off-limits for single-spouse judgments; individually titled property has no homestead protection. Use our professional asset search.
3. Record judgment in land records of each relevant jurisdictionFile in each of the 24 Maryland recording jurisdictions where the debtor holds individually titled real property. No homestead means the full equity is encumbered from dollar one. Montgomery County, Howard County, and Baltimore City/County are the highest-priority recording offices. See our judgment lien guide.
4. Initiate wage garnishmentMaryland’s federal government and defense contractor workforce offers extraordinary wage garnishment potential. Standard 25% CCPA via writ of garnishment of wages. Note: federal civilian salary has separate OPM garnishment procedures — consult Maryland counsel.
5. Serve writ of garnishment on financial institutionsJoint bank accounts reachable for debtor’s share — Maryland TBE does NOT extend to bank accounts. Time service after payday. Federal salary direct deposits have a 2-month look-back protection for amounts directly deposited. See our asset levy guide.
6. Evaluate TBE destruction strategy for high-value marital homesIf a basis for joint liability exists (necessaries claim under Fam. Law §4-203, joint contract, fraudulent transfer), obtain a judgment against both spouses to destroy TBE protection on the marital home. The full equity of the jointly held property then becomes accessible.

Frequently Asked Questions

Related Resources