Distributing assets between spouses is one of the most contentious and stressful parts of a divorce. Many people worry about what they will get to keep, what they may lose, and whether the outcome will be fair. If you’re filing for divorce in Pennsylvania, it’s important to understand the system family courts use to divide property. Continue reading for more information. Reach out to an experienced Montgomery County property division lawyer for skilled representation today.

What System Do PA Family Courts Use to Divide Property?

Pennsylvania family courts use an equitable distribution system to divide marital property during a divorce. Unlike community property states, where assets are split 50/50, equitable distribution aims for a fair, but not necessarily equal, division.

Equitable distribution focuses on fairness based on each spouse’s circumstances, contributions, and future needs. Judges consider numerous factors outlined in the Pennsylvania Divorce Code, such as:

  • The length of the marriage
  • The age and health of each party
  • The income and earning capacity of each party
  • The contribution of either party to the other’s education or increased earning capacity
  • The standard of living established during the marriage

The court must first determine which assets are subject to division and then value them, most often based on fair market value, replacement costs, and book values, depending on the type of asset. Once this has been determined, the court can distribute property based on all relevant factors.

What is Considered Marital Property?

Only marital property is subject to equitable distribution. Other assets that are considered individually owned by only one party are “separate” and will not be split between the spouses. Marital property in Pennsylvania includes all assets acquired or earned by either spouse from the date of marriage until the date of separation. This can include a wide variety of assets, such as real estate, bank accounts, retirement funds, pensions, vehicles, and household furnishings, regardless of which spouse’s name is on the title. The most important factor is that the asset was obtained during the marriage.

Separate property, on the other hand, is anything owned by a spouse prior to the marriage, or received during the marriage as a gift or inheritance solely for that spouse. However, separate property can lose its protected status if it becomes commingled with marital assets.

For example, if one spouse uses inherited funds as a down payment on the marital home and the mortgage is paid using marital income, the separate property portion may be difficult to trace and could be considered commingled, making it subject to equitable distribution. Also, any increase in the value of separate property that occurs during the marriage may be considered marital property.

If you’re filing for divorce, protect your property rights by securing the help of a knowledgeable attorney at Cohen & Patel today.