Under Pennsylvania Divorce law, if a divorcing couple is unable to reach an agreement as to how their real and personal property will be divided, the court will use a system called “equitable distribution” and order the property award as part of the divorce decree. 

 Equitable distribution does not mean that the property will be divided equally at the time of divorce.  Rather, equitable distribution means that the property will be divided in a manner that the court deems to be fair.  In order to determine how it will fairly divide that property, the court will first determine which property and debt is considered marital.  The property and debt that is determined to be marital is called the “marital estate.”  The court will then assign a dollar value to the property and debt.  Finally, the court will distribute the property or assets between the parties in an equitable fashion.  

Under this method of property division, it is of the utmost importance for individuals going through a divorce to know what property and debt will be considered part of the marital estate.  There are many rules that are used to determine what will be included in the marital estate and also many exceptions to those rules.  That being said, there are some basic guidelines that anyone involved in divorce proceedings should be familiar with.   

All property acquired during the marriage is presumed to be marital property.  Property acquired post-separation in exchange for marital assets is marital property.  Property acquired during cohabitation prior to marriage is not marital property.  The equitable distribution provisions of the Divorce Code are “title blind” in that the determination of marital property is without regard to title, whether it is held individually or by the parties jointly.  The intent of the parties, as evidenced by their behavior, determines the characterization of property as marital or separate.  

Although marital property is generally valued as of the date of distribution, the determination of what is marital property is made as of the date of separation.  Property received post-separation but earned during the marriage and prior to final separation is marital property.  The increase in value during the marriage of separate property is marital property.  On the other hand, post-separation increases in the value of separate property are not includable in the marital estate.  

The Divorce Code also outlines statutory exclusions from marital property.  These include property acquired prior to marriage or property acquired in exchange for property acquired prior to the marriage, property excluded by a valid agreement of the parties made before or during the marriage or post-separation, property acquired by gift, devise, or descent or property acquired in exchange for such property, and property acquired subsequent to final separation.  

Again, the rules outlined above are only a few examples of those determining what property will be divided at the time of divorce and how that property will be divided.  There are many additional rules and exceptions are numerous and complex.  It is important for couples going through a divorce to seek legal counsel and to consider all their options in order for them to be able to exercise the most control over the disposition of their marital and separate property and debts at the time of divorce.  It is recommended that you seek a consultation with a lawyer specializing in family law.  You may call Sadek Law Offices, LLC to set up your initial consultation regarding divorce or family law.  

If there are any general questions or topics you would like to read about relating to divorce law  in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Lawyers at Sadek Law Offices, LLC at 215-545-0008  or (877) 4-LAW-411 or email info@sadeklaw.com.  Thank you.