Common Issues facing Same-Sex Divorce For Gay and Lesbian Couples in Maryland

There are some important issues facing same-sex gay and lesbians couples when it comes to divorce in Maryland, now that gay marriage is legal. Since this law is so new, it remains to be seen how the Maryland courts will deal with these pending issues. It is therefore very important to work with an attorney mediator to protect both parties' interests.

• Alimony tax treatment.  Same sex couples don’t receive the often favorable tax treatment of Alimony as deductible to the payor and includable in the gross income of the recipient. Instead same sex Alimony payment may give rise to unfavorable gift tax issues.
• Social Security Benefit elections are restricted. 
• Federal Tax Filing Status is different.  Same sex couples cannot file jointly and therefore are denied those financial advantages.
• Payments of Marital Settlement Awards - This means that property transfers between same sex couples could give rise to whopping tax liabilities, such as gift taxes in cases where one spouse pays the other a lump-sum settlement.
• Transfer of a Family Home - This may give rise to capital gains taxes where heterosexual couples enjoy tax-free transfers.
• Division of Retirement Interests - Where one spouse seeks to transfers part of a qualified retirement plans or tax sheltered annuity to the other spouse, heterosexual couples avail themselves of a court’s order called the qualified domestic relations order (QDRO) in accordance with the federal Employment Retirement Income Security Act (ERISA). Unfortunately same-sex couples end up with tax liability and penalties for early withdrawal.
• Adultery as a Grounds for Divorce - Adultery in Maryland is defined as sexual intercourse, defined as the insertion of the penis into the vagina. 
• Parent Relocation Cases - Often parents have “relocation” provisions in their Separation and Marital Settlement Agreements, defining the “rules” of what would happen if one parent relocated to another State. If the relocating parent is relocating to a State which does not recognize same sex, what are the implications? 
• Adoption/Paternity - Laws relating to presumption of parentage for a child born to one party during a legal marriage and laws relating to adoptions might also have a special impact in certain same sex cases. 
• Divorce Jurisdiction Issues - What happens when same sex parties are legally married and one or both parties subsequently relocate to a State or States where same sex marriage is not recognized?