How are Assets Divided During Divorce?

Though divorce is a different experience for most people, the courts of Pennsylvania typically stick to the method of “equitable division of marital property” upon divorce.

First, what is considered “marital property” and what is “equitable distribution?” Generally, “marital property” is any property that either spouse has obtained throughout the marriage.  It could also be property that a spouse owned before the marriage (or the increase in its value) but used for marital purposes.  For those who have been married for quite a while, this could be a great deal of property to split up. So how do the courts do it?

Pennsylvania courts generally divide marital property equally. For the most part, either spouse should receive 50% of the marital property. This also means that 50% of any marital debts will also fall on each spouse.  Although this is the general rule, the court may skew the distribution so that one spouse receives more than 50% of the marital estate.

It is also important to note that this 50/50 split does not mean that the spouses will continue to share ownership of the house or the car, but one spouse may receive the house worth $300,000 and the other spouse may get the car that is worth $40,000 along with the lake house that is worth $260,000. Each spouse now has an equal portion of the marital property.

So when does equitable distribution begin? Once a spouse has filed for divorce and the statutory separation period has ended, either spouse may request that the court divide the assets equally.  The court does this by evaluating many factors to determine proper equitable distribution. Such factors include:

1.)      How long the marriage lasted;

2.)      Any prior marriages of either party;

3.)      Age, health, income, liabilities, etc. of both parties individually;

4.)      The contribution of one party to the educational support or increasing earning power of the other party;

5.)      Any potential future acquisition either party may receive (capital assets and income);

6.)      Sources of income (this includes medical, retirement, insurance, and other benefits);

7.)      The contribution or use of marital property (weather leading to appreciation or depreciation of the marital property);

8.)      The value of the property set apart to each party;

9.)      The standard of living that was established during the marriage;

10.)                                    The economic status of each party at the time the division of the property is to become in effect (this can be measured through employment of each party, the type of job, how long either party has had that job, etc.);

11.)                                    Federal, state, and local tax implications associated with each asset;

12.)                                    The expense to sell, transfer, or liquidate any piece of property; and

13.)                                    Whether either party will be the primary custodian over any children.

You may notice that marital misconduct is not listed above.  That’s right.  The court does not consider marital misconduct—an extramarital affair or even domestic violence, when determining how to distribute the marital estate.

In simple terms, the court will determine what constitutes marital property between the two parties and then it will value that property and distribute the property in a method they find to be equitable to both spouses.  Equitable, however, may not mean equal.

*Disclaimer: the advice provided is for informational purposes and is not intended as legal advice.  It should not be relied on, nor construed as creating an attorney-client relationship.