When dividing property in a Pennsylvania divorce, courts examine not only real estate, bank accounts, or other tangible assets but also items such as professional licenses, pension benefits, personal injury proceeds, marital debts, business goodwill, and future interests. Each of these is handled according to specific guidelines.
1. Professional Licenses or Degrees
- The license or degree itself is not considered marital property.
- However, a court may use its equitable powers to compensate the non-earning spouse if that spouse contributed financially toward obtaining the license or degree.
- Any reimbursement is typically limited to the actual monetary contributions made (e.g., tuition, books, fees).
2. Pension Benefits
- A spouse’s pension that accrues during the marriage (including 401(k), profit-sharing plans, etc.) is considered marital property.
- It is divisible even if the non-employee spouse did not directly contribute to it.
3. Personal Injury Proceeds
- Personal injury proceeds are marital property if the cause of action (the injury event) happens between the date of marriage and the date of final separation.
4. Marital Debts
- Debts accrued during the marriage are typically classified as marital debts.
- In determining whether a debt is marital or separate, courts look at:
- Purpose of the debt
- Who incurred it
- Who benefited from it
- Which spouse is in a better position to repay it
5. Goodwill
- The reputation and client base of a professional practice or business can count as marital property if it can be reliably assigned a dollar value.
6. Future Interest
- Any possible future interest (for example, a speculative inheritance or contingency) is not subject to distribution.
7. Tax Consequences
- Equitable distribution payments or property transfers during a divorce are not taxed at the time they are made.
- Once the property is sold, however, taxes may apply.
8. Alimony vs. Property Division
- Property division generally addresses past contributions and the accumulation of marital assets during the marriage.
- Alimony focuses on the future, often helping a financially disadvantaged spouse transition post-divorce.
Divorce Lawyer R. Badet
With extensive experience in divorce, spousal support, child support, and custody, Divorce Lawyer R. Badet offers thorough guidance throughout the divorce process. To learn more, visit www.lawyersfordivorces.net or call for a free consultation.
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