Pennsylvania Property Division | PA Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

In a divorce case, the entire prior marriage must be sorted out by the courts. A universal one concern is property division, specifically Pennsylvania property division.

Before getting a divorce, a spouse should retain a licensed Family Law attorney. Property division laws can be confusing, vary from state to state and lawyers have the proper training and experience to tell the judge what a divorcing spouse wants and needs from the property division.

Property Division Divorce Laws in Pennsylvania

The purpose of Pennsylvania property division laws is to make sure that marital property is allocated to each spouse equitably, but not necessarily in a 50-50 split. Pennsylvania marital property is divided under the considerations of 23 Pa.C.S. §3502 but the trial court judge receives great discretion when converting Pennsylvania marital property into separate Pennsylvania divorce property.

Pennsylvania is an equitable distribution state. This means that with regard to Pennsylvania divorce assets, anything the spouses brought into a marriage usually will not be included in Pennsylvania divorce assets or Pennsylvania divorce property.

What is considered Marital and Non-Marital Property?

23 Pa.C.S. §3501 defines marital property as “all property acquired by either party during the marriage and the increase in value of particular non-marital property” subject to the provisions of the statute.

Non-marital property is the listed exemptions to marital property under 23 Pa.C.S. §3501. Some of these include:

Property acquired prior to marriage or property acquired in exchange for property acquired prior to the marriage
Property excluded by valid agreement of the parties regardless of when the agreement was executed
Property which a party has sold, granted, conveyed or otherwise disposed of in good faith and for value before the date of final separation
Any payment received as a result of an award or settlement for any cause of action or claim which accrued prior to the marriage or after the date of final separation regardless of when the payment was received
Property acquired by gift, (except between spouses) bequest, devise or descent or property acquired in exchange for such property
Property to the extent that it has been mortgaged or otherwise encumbered in good faith for value before the date of final separation

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The final step is the allocation of marital property.

Under 23 Pa.C.S. §3502(a), the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length
The parties' age & health
The parties' prior marriages
The parties' circumstances
The parties' sources of income

Using statutory factors, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $6,000. The court would most likely determine a proper allocation to each spouse
- Example 2: A joint savings account has $6,000. One spouse contributed $4,000 and the other contributed $2,000. The amount may be divided 50-50 or may be more balanced if the $2,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to a portion of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it.
Vehicles: Divided based on the values at the date determined by the court. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse The car may be sold with the proceeds divided between each spouse or the car may be given to a spouse outright.
- Example 2: A boat has a shared title. The boat may be sold with the proceeds divided between each spouse or given to a poorer spouse outright.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. If marital income was used to make payments on the insurance, the spouse may be entitled to a portion of the benefits.

Settling Disputes in a Divorce Case with Property and Asset Division

Under 23 Pa.C.S. §3502(e), the court may take a number of actions in order to enforce the property division award against an uncooperative spouse. Once the property division order is entered, Pennsylvania case law bars a party from getting it modified.

The trial court's determinations will not be changed by a higher court unless the division was clearly unjust.

Help From a Pennsylvania Property Divorce Lawyer

It can not be stressed enough that retaining a Pennsylvania property divorce lawyer is key to getting the fairest and most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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