One of the most crucial aspects of a divorce is how the marital property is to be divided. Unlike some states, Pennsylvania follows the principle of equitable distribution. Here’s what that means and how it can affect you and your property in the event of a divorce.
Decoding Equitable Distribution in Pennsylvania
Pennsylvania is an equitable distribution state. This means that marital property is divvied up in a way the court deems fair, taking into account various factors concerning the marriage and each spouse’s circumstances.
Rather than an automatic 50/50 split, it’s not uncommon for courts to order divisions like 60/40 or divide different assets in different ways depending on the specific circumstances.
Marital vs. Non-Marital Property
In the simplest terms, marital property refers to the assets acquired by either partner during the marriage. Debts incurred during the marriage are also considered. Marital assets and debts may include:
- Real estate
- Vehicles
- Furniture
- Income earned during the marriage
- Bank accounts
- Retirement accounts and pensions
- Businesses owned by either spouse
- Mortgages
- Credit cards
On the other hand, non-marital or separate property usually includes anything owned before the marriage, gifts received by one spouse, inheritances, and items excluded by a prenuptial agreement.
It’s important to note that an increase in the value of non-marital property during the marriage can be considered marital property. For instance, if a partner had stock in a certain company that exponentially increased in value due to strong market tailwinds or other conditions, those gains could be subject to division.
Factors Influencing Property Division
Pennsylvania courts consider several factors when determining how to divide marital property equitably. These include:
- The duration of the marriage
- Each spouse’s health, age, skills, job opportunities, and overall financial standing
- Contributions one partner made toward the other’s career or education
- The standard of living established during the marriage
- Each spouse’s contribution to the acquisition of marital property
- Custodial responsibilities for any minor children
- The tax consequences of property division
These factors are weighed without any preset formula. In other words, the court has leeway to decide how much weight they will place on each factor, and how each factor will affect the percentage.
Dividing Marital Property Can Be Complex
Divorce is a difficult process that can take away all sense of control from your life. Separating spouses can reclaim some of that control by working with an experienced family law attorney. An attorney can protect your rights, offer guidance on what to expect from the legal process, and ensure that you’re treated fairly.