When dividing property during a divorce in Pennsylvania, the court may evaluate several unique aspects beyond traditional assets. These include professional licenses, pension benefits, personal injury proceeds, marital debts, goodwill, future interests, tax consequences, and alimony or spousal support.
Key Considerations
- Professional Licenses or Degrees:
- A professional license or degree itself is not considered marital property.
- However, the court may grant compensation for actual financial contributions made by one spouse toward the other spouse’s education or training (e.g., tuition or living expenses).
- Pension Benefits:
- Pensions, profit-sharing plans, and 401(k)s accumulated during the marriage are marital property and subject to division.
- The non-employee spouse is entitled to a share, regardless of their direct contribution.
- Personal Injury Proceeds:
- If the cause of action for personal injury occurs between the date of the marriage and final separation, these proceeds are classified as marital property.
- Marital Debts:
- Debts incurred during the marriage are typically considered marital debts.
- Factors influencing debt classification include:
- The purpose of the debt.
- Who incurred the debt.
- Who benefited from the debt.
- Which party is better able to repay it.
- Goodwill:
- The reputation and clientele associated with a professional practice or business can be valued and treated as marital property if it holds a measurable dollar value.
- Future Interest:
- Possible future interests in property (e.g., inheritance not yet received) are not considered distributable marital assets.
- Tax Consequences:
- Property transfers or equitable distribution payments during the divorce are not taxable at the time of transfer.
- However, the property may be subject to taxes upon its eventual sale.
- Alimony vs. Property Division:
- Property Division: Focuses on past contributions and asset accumulation.
- Alimony: Addresses the future financial needs of the less advantaged spouse.
Legal Expertise
Property division during divorce can involve nuanced considerations. Divorce Lawyer R. Badet offers in-depth knowledge and tailored strategies to ensure a fair outcome in complex cases.
Visit www.lawyersfordivorces.net or call 267-277-2641 for a free consultation.
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