When dividing marital property in Pennsylvania divorces, the court considers several different types of property and assets. Some of the key considerations include:
1. Professional Licenses or Degrees
While a professional license or degree itself is not considered marital property, the court can use its equity powers to award compensation in the form of reimbursement if one spouse made financial contributions toward the other spouse earning their degree. For instance, if one spouse paid for the tuition or provided financial support while the other earned a professional degree, the contributing spouse may be entitled to reimbursement, though they won’t receive a share of the degree’s value.
2. Pension Benefits
Pension benefits, including 401(k) plans, profit-sharing plans, and other similar retirement benefits, are considered marital property if they were earned during the marriage, even if only one spouse contributed to the pension. These benefits will be divided according to the court’s decision during the divorce process.
3. Personal Injury Proceeds
Personal injury proceeds (such as a settlement or judgment from a lawsuit) are generally considered marital property if the cause of the injury occurred during the marriage and before the final separation. However, if the injury happened after separation, the proceeds may be considered separate property.
4. Marital Debts
Marital debts, like marital property, are subject to division. The court classifies debts as either marital or separate, and marital debts are those incurred during the marriage. The court will assess:
- Purpose of the debt: Was the debt used for a family need or luxury?
- Who incurred the debt: Was one spouse primarily responsible for the debt?
- Who benefited from the debt: Did both spouses benefit from the expense?
- Who is best able to repay the debt: Which spouse has the financial capacity to handle the repayment?
5. Goodwill
In business divorce cases, the goodwill of a business or professional practice is considered marital property to the extent that it has a value. This includes the business’s reputation, clientele, and future earning potential. The court will assess whether goodwill can be quantified and how much it is worth in the division of assets.
6. Future Interest
A future interest in property, such as an inheritance or a contract that may become beneficial in the future, is not subject to division during divorce. This differs from alimony or spousal support, which is future-oriented.
7. Tax Consequences
Property transfers or equitable distribution payments during the divorce process are generally not taxable at the time of transfer. However, if the property is sold in the future, the proceeds from the sale may be subject to taxation. Both spouses should be aware of the potential tax consequences that could arise after the divorce when they sell or transfer assets.
8. Alimony or Spousal Support
In comparison to property division, which focuses on the past, alimony (or spousal support) addresses future financial needs and is typically based on the recipient spouse’s future support. The amount and duration of alimony are determined by factors such as the duration of the marriage, the standard of living during the marriage, the earning potential of both parties, and other financial considerations.
Experienced Divorce Lawyer – R. Badet
Dividing property during a divorce can be a complex and stressful process, especially when dealing with items like professional licenses, pension benefits, debts, and goodwill. Having an experienced divorce lawyer like R. Badet can help ensure you receive a fair division of assets. Whether you’re going through a simple or complex divorce, R. Badet specializes in guiding clients through every aspect of the divorce process, from property division to child custody, spousal support, and more. With his experience in both family law and criminal law, he can navigate even the most difficult cases.
For more information and a free consultation, visit www.lawyersfordivorces.net or contact Divorce Lawyer R. Badet directly.
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