When dividing assets in Pennsylvania divorces, several unique considerations may arise:
Key Factors
- Professional Licenses and Degrees
- A professional license or degree is not considered marital property, but financial contributions made by one spouse towards the other’s education may qualify for reimbursement. The amount is limited to documented expenses, not the value of the degree.
- Retirement and Pension Plans
- Pension benefits, including profit-sharing plans and 401(k)s, earned during the marriage are treated as marital property and subject to equitable division, regardless of contributions made by the non-employee spouse.
- Compensation from Personal Injury Cases
- If a personal injury claim arises between the date of marriage and final separation, any proceeds are classified as marital property.
- Shared Debts
- Debts incurred during the marriage are generally considered marital debts. The court examines:
- The purpose of the debt.
- Who incurred it.
- Who benefited from it.
- The capacity of each party to repay.
- Debts incurred during the marriage are generally considered marital debts. The court examines:
- Goodwill
- The value of a professional practice’s reputation and client relationships is treated as marital property if it can be quantified.
- Future Interests
- Potential future interests in assets are excluded from marital property distribution.
- Tax Implications
- While property transfers or payments resulting from equitable distribution are not taxable at the time of transfer, the recipient may face taxes when selling the property later.
Comparing Property Division and Alimony
- Property Division: Focuses on equitable distribution based on past contributions and circumstances.
- Alimony: Looks ahead, providing financial support for one spouse’s future needs.
An experienced attorney can help navigate these complexities, ensuring a fair and efficient resolution. For more details, contact Divorce Lawyer R. Badet at (267) 277-2641 or visit www.lawyersfordivorces.net.