Dividing property during a divorce can be one of the most complex aspects of the legal side of this process. In Pennsylvania, property division matters that cannot be resolved without judicial intervention are sorted out according to the state’s equitable distribution standards. This means that marital assets are divided fairly, though not necessarily equally, between spouses according to a judge’s interpretation of the situation at hand.
Understanding how courts determine property division can help each spouse to set realistic expectations as they approach negotiations in an effort to avoid judicial intervention or litigation in the event that disputes can’t be solved in other ways.
Marital vs. separate property
Before assets are divided, they must be classified as either marital property or separate property. Marital property includes most assets acquired after a couple gets married. Separate property are those assets that legally belong to one spouse outright, including property owned before marriage and gifts bestowed upon one individual alone.
Some assets, like businesses, pensions or investments, may be partially marital and partially separate, depending on when and how they were acquired. Understanding these classifications can help both parties set reasonable expectations for what they may receive in their divorce settlement.
When asset division isn’t a straightforward process
In anticipation of fair asset division, courts may consider a variety of concerns, include:
- The length of the marriage
- Each spouse’s income and earning capacity
- Contributions to the marriage, including homemaking and childcare
- The standard of living established during the marriage
- Any dissipation of marital assets, such as reckless spending or hiding money
- Future financial needs, particularly for a lower-earning spouse
Many divorcing spouses assume they will receive an equal share of all assets, but equitable distribution does not guarantee this outcome. Courts may award a larger portion to a spouse with lower earning potential or one who contributed significantly as a caregiver. High-value assets, like homes or retirement accounts, may be divided in ways that require selling or refinancing property to provide an equitable outcome.
As such, it is generally wise to seek personalized legal guidance before setting expectations about a divorce scenario that is wholly unique to the former couple in question.
