This raises several important considerations. While divorcing spouses have significant flexibility to divide their property in a way that works for both of them, there are rules that apply. Regardless of the circumstances of your divorce, it will be important to ensure that you are making informed decisions, and it will be equally important to ensure that you do not leave any property-related issues unresolved once your marriage is over.

Pennsylvania Requires an “Equitable Distribution” of Marital Property

In Pennsylvania, divorcing spouses are required to divide their marital property “equitably”—and this does not necessarily mean a 50/50 split. Under Pennsylvania’s equitable distribution law, when deciding how to divide their marital assets, divorcing spouses must take into account factors such as:

• The duration of the marriage
• The standard of living enjoyed during the marriage and each spouse’s financial contributions
• Each spouse’s age and overall health
• Each spouse’s education and employability
• Each spouse’s post-divorce parenting rights and responsibilities
• The non-marital (or “separate”) assets each spouse will keep after the divorce
• The tax implications of various options for distributing marital property

Applying these factors, it may or may not be equitable to split divorcing spouses’ marital assets equally. If an equal split is not equitable under the circumstances at hand, then determining the appropriate split will be a key early step in the divorce process.  

Non-Marital Assets Are Not Subject to Distribution During a Divorce

While divorcing spouses are required to equitably distribute their marital property during the divorce process, non-marital assets are not subject to distribution. Instead, non-marital assets belong to a single spouse, and each spouse is entitled to keep his or her non-marital (or “separate”) assets regardless of any equitable considerations. Most non-marital assets fall into one of three categories:

• Assets owned prior to the marriage
• Assets acquired by gift during the marriage
• Assets acquired by inheritance during the marriage

But, there are other possibilities as well; and, in some cases, assets that fall into one of these three categories can be transformed into marital property. As a result, as you prepare for your divorce, you will want to make separate lists of assets that you believe might be yours or your spouse’s to keep, but it will also be important to discuss each of these assets with your divorce lawyer to ensure that you handle them appropriately.

Compromise is Required (Unless You Are Prepared to Go to Court)

As with all aspects of the divorce process, divorcing spouses must be able to find a way to agree on the distribution of their marital property in order to avoid going to court. Fortunately, divorcing spouses have a wide range of options—and most couples will be able to find a way forward that works for both of them. Some examples of the types of options you may want to consider during your divorce include:

• Dividing financial assets (i.e., each spouse keeps a portion of the couple’s accumulated savings)
• Agreeing that each spouse will keep assets of substantially equal value (i.e., each spouse keeps his or her own retirement account)
• Agreeing that each spouse will give up their share of certain assets in exchange for others (i.e., one spouse keeps the family home while the other keeps a collection of other assets)
• Selling certain assets and dividing the sale proceeds (i.e., if neither spouse wants to continue living in the family home)
• Combining asset and debt division (i.e., taking into account your mortgage and car loan balances when structuring an overall “equitable” distribution)

These truly are just examples. Importantly, while both spouses need to be willing to compromise, both spouses also can—and should—prioritize any specific assets they want to keep. While divorcing spouses will want to keep the same assets in some cases, oftentimes, divorcing spouses’ priorities will be different enough that they can use their contrasting goals to guide the equitable distribution process.

Comprehensiveness is Key for Avoiding Problems in the Future

As we said above, when going through a divorce, it is critical not to leave any property-related issues unresolved. Overlooking marital assets (or mischaracterizing marital assets as non-marital assets) can lead to contentious, and potentially costly, disputes down the line. Thus, while you might be anxious to finalize your divorce and move on with your life, you need to ensure that your divorce is truly final when you bring your marriage to an end.

To illustrate what can happen, let’s say you and your spouse both forget about an investment account that you set up years ago. Then, one day after your divorce, you remember. Can you use the money in the account? What if your spouse is the only one who knows the password? How do you “equitably” distribute the funds in the account now that your divorce is over? These are all issues that can become much more difficult to resolve once you have finalized your divorce.

There Are Options for Resolving Property-Related Disagreements—Including Apparent Impasses

Finally, even when divorcing spouses are struggling to find a path forward, there are various options for resolving property-related disagreements without going to court. An experienced divorce lawyer will be able to help you navigate the process; and, if necessary, your divorce lawyer can help you consider options such as divorce mediation or a collaborative law divorce. Ultimately, if both spouses are willing to be reasonable, and if both spouses share a common interest in agreeing on the terms of their divorce, they will be able to reach an agreement in most cases.

Schedule a Free Consultation with Stroudsburg Divorce Lawyer Gary J. Saylor, II

Do you have questions about the property-related aspects of getting divorced in Pennsylvania? If so, we invite you to get in touch. To schedule a free consultation with Stroudsburg divorce lawyer Gary J. Saylor, II, please call 570-421-5568 or request an appointment online today.