Equitable Distribution of Marital Property

In recent years, the courts have begun to view marriage as an economic partnership. This has led many states to adopt the philosophy of “equitable distribution” when deciding how to split up marital property in the event of a divorce. Pennsylvania is one of the many states that now adhere to this philosophy and legal principle.

What is Equitable Distribution?

Under equitable distribution, there are two different types of property as defined by statute:

• Marital property
• Separate property

If property or assets were acquired over the course of the marriage, they are considered “marital property,” even if only one spouse holds the title. Exceptions to this rule are:

• Gifts
• Inheritances
• Personal injury awards

Property and assets acquired before the marriage are considered “separate property” as long as they are not co-mingled with marital property during the course of the marriage.

Equitable distribution states that separate property will remain the property and possession of the spouse who owned it prior to the marriage, while marital property will be divided between both spouses, regardless of who holds the title.

Equitable Distribution Does Not Mean Equal Distribution

Equitable distribution does not necessarily mean that property will be divided equally between both spouses. In certain situations, particularly when a business is involved, assets will be divided based on the contributions of each spouse. For example, if a business was started during the marriage but was worked only by one spouse, the value of the business will often not be split equally. The court will generally look at the other spouse’s contributions to the marriage (such as parent and homemaker) and determine a fair percentage of the business to be awarded based on these other contributions. Often, that percentage will be less than half.

In general, the following marital assets will be distributed equally:

• Homes
• Cars
• Boats
• Bank accounts
• Pensions
• IRAs
• 401Ks
• Other forms of savings and investments

Couples with an unequal accumulation of assets prior to their marriage may want to consider a prenuptial agreement to ensure that property is fairly divided in the event of a divorce.

Saidis, Sullivan & Rogers Can Help

The Central Pennsylvania family law attorneys at Saidis, Sullivan & Rogers are here to help you through this difficult time in your life. We have handled many divorce cases, and we have a strong understanding of Pennsylvania equitable distribution laws. We can help ensure that your best interests are represented when your property and assets are divided during the divorce.

Our lawyers will always strive to resolve your divorce in the most amicable way possible, and we offer mediation and collaborative law services for clients who would like to utilize alternative dispute resolution methods for their divorce. However, if necessary our lawyers are prepared to fight for you in court to ensure you achieve a fair settlement.

Please contact Saidis, Sullivan & Rogers today to schedule your initial consultation. We serve clients in Cumberland and Dauphin Counties in Central Pennsylvania.