When dividing property in a Pennsylvania divorce, there are several important factors to consider: (1) Professional Licenses or Degrees, (2) Pension Benefits, (3) Personal Injury Proceeds, (4) Marital Debts, (5) Goodwill, (6) Future Interest, (7) Tax Consequences, and (8) Alimony or Spousal Support.
Professional Licenses or Degrees
While a professional license or degree itself is not considered marital property, the court can award compensation through reimbursement if one spouse contributed financially to the other’s attainment of the degree or license. However, the reimbursement is only for the actual financial contributions made, not for the value of the degree itself.
Pension Benefits
Pensions accrued during the marriage are considered marital property, regardless of which spouse earned them. This includes pension plans, 401(k)s, and other retirement benefits. The non-employee spouse is entitled to a share, even if they did not directly contribute to the pension.
Personal Injury Proceeds
If personal injury compensation is received for an injury sustained during the marriage but before the final separation, these proceeds are considered marital property.
Marital Debts
Debts incurred during the marriage are generally classified as marital debts. When determining the nature of debts, the court will assess factors such as:
- The purpose of the debt,
- Who incurred the debt,
- Who benefited from it,
- Who is most capable of repaying it.
Goodwill
The value of goodwill, which includes the reputation and clientele of a professional practice or business, can be considered marital property, provided it can be assigned a dollar value.
Future Interest
A future interest in property is not subject to division at the time of the divorce.
Tax Consequences
While property transfers and equitable distribution are not taxed at the time of transfer, taxes may apply when the property is later sold.
Divorce Lawyer R. Badet is a skilled divorce attorney with experience in both simple and complex divorce cases. His practice includes handling spousal support, child support, and custody issues. He is dedicated to ensuring that clients receive the best possible outcome. For more information and a free consultation, visit his website at www.lawyersfordivorces.net. With years of litigation experience, he represents clients in both family law and criminal law matters.