In Pennsylvania, property division involves various considerations, including professional credentials, retirement accounts, injury settlements, marital debts, and more.
1. Professional Licenses or Degrees
- Licenses or degrees are not classified as marital property.
- Courts may grant reimbursement if one spouse financially contributed to the other’s education or career advancement, provided they can substantiate those expenses.
2. Pension Benefits
- Pensions accumulated during the marriage, including 401(k) plans or profit-sharing, are marital property and subject to division, regardless of whether the non-employee spouse contributed.
3. Personal Injury Proceeds
- If the cause of action for personal injury occurs between the marriage’s start and final separation, the proceeds are treated as marital property.
4. Marital Debts
- Debts incurred during the marriage are generally deemed marital debt.
- Courts examine:
- The purpose of the debt
- Who incurred it
- Who benefited
- Which party is better positioned to repay
5. Goodwill
- The reputation and customer base of a professional practice or business are considered marital property if a monetary value can be assigned.
6. Future Interest
- Potential future property interests are not eligible for distribution during a divorce.
7. Tax Implications
- Property transfers as part of equitable distribution are not taxed during the transfer. However, taxation applies when the asset is sold.
8. Alimony vs. Property Division
- Property division reflects past contributions, while alimony focuses on future financial needs.
Expert Legal Assistance
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