Equitable Distribution of Marital Assets

In most cases the parties to a divorce action are able to enter into a written agreement that equitably divides their marital estate. However, in some cases the parties simply are unable to agree on an acceptable way to divide their assets and debts and it becomes necessary to have the Court intervene and equitably divide the marital estate.

Before the Court can determine how to equitably divide the marital estate it must be informed which items qualify as marital assets and which items constitute marital debts. Pennsylvania law presumes that all property acquired during the course of the marriage and prior to the date of separation is marital property. This same presumption can generally be applied to marital debt. Whose name a particular asset or debt is titled in is irrelevant for purposes of determining what is and is not a marital asset.

Marital assets typically include, but are not limited to, real and personal property such as the marital home, any business interests owned by the parties, check and savings accounts, stocks, bonds, investment accounts, pensions and 401(k) plans.

The value of a marital estate is typically determined as of the date of distribution and not the date of separation. This is an important consideration as many assets will continue to increase or decrease in value prior to an equitable distribution award being entered. Equitable distribution does not always require or result in an equal division or 50/50 split of the marital estate and the Court may award one party a higher percentage of the marital estate.

There are many factors the Court considers prior to making an equitable distribution award. Those factors include, but are not limited to, the following:

1. The length of the marriage;

2. If either party was married previously;

3. The age, health, income, vocational skills, liabilities and needs of each party;

4. The contribution by one party to the education, training, or increased earning power of the other party;

5. The opportunity of each party to acquire capital assets and income in the future;

6. The source of income of both parties;

7. The standard of living of the parties during the marriage;

8. The economic circumstances of each party at the time of equitable distribution; and

9. The tax consequences associated with equitable distribution to each party.

It is also important to note that marital misconduct is not a factor considered by the Court in determined how to distribute a marital estate. For example, an adulterous spouse will not receive a smaller share of the marital estate based solely on the fact that he or she committed adultery.

Our staff will work diligently to insure that your property rights and interests are properly safeguarded. Please contact our firm immediately at 877-826-9659 so that we may discuss the options that are available to you.