In Pennsylvania, when dividing property in a divorce, it’s important to consider various factors that may not be immediately obvious. While the general rule of equitable distribution applies to most assets, some items require special attention due to their unique nature. Here are several important considerations for property division:
1. Professional Licenses or Degrees:
- Not marital property: A professional license or degree is not considered marital property and, therefore, cannot be divided between spouses.
- Reimbursement for contributions: However, the court may use its equitable power to award compensation for financial contributions one spouse made toward the other’s education or professional training (e.g., paying for tuition or other related expenses).
2. Pension Benefits:
- Marital property: Pension benefits earned during the marriage are subject to division, even if the non-employee spouse did not contribute directly to the pension. This includes profit-sharing plans, 401(k) accounts, and other retirement plans.
- The court will calculate the portion of the pension that was earned during the marriage and allocate it as marital property.
3. Personal Injury Proceeds:
- Marital property if earned during the marriage: If one spouse receives personal injury compensation as a result of an injury occurring during the marriage, the proceeds are typically classified as marital property.
- This applies to any proceeds received for pain and suffering, lost wages, medical expenses, etc., that arise from an incident during the marriage.
4. Marital Debts:
- Marital or Separate Debt: Debts incurred during the marriage are usually considered marital debts, and therefore subject to division.
- The court will consider:
- Purpose: Why the debt was incurred.
- Who incurred it: Which spouse took on the debt.
- Benefit: Which spouse benefited from the debt.
- Ability to repay: Who is best able to repay the debt.
- Separate debts (incurred before the marriage or after separation) are not considered marital property.
5. Goodwill:
- Marital property in business contexts: The reputation, clientele, and other intangible assets of a professional practice or business may be considered marital property if they have a quantifiable value.
- This is important if one spouse owns a business or works in a profession with goodwill (e.g., doctors, lawyers, or business owners).
6. Future Interests:
- Not distributable: A future interest in property, such as a right to inherit or a property that will not be available for sale or transfer during the divorce process, is not subject to division.
- While future interests are not divided, they may be considered in other ways, such as during spousal support or alimony calculations.
7. Tax Consequences:
- Equitable distribution is not taxed: Transfers of property or assets as part of equitable distribution in a divorce are not taxable at the time of transfer.
- Taxation occurs later: The tax consequences of dividing property will be realized when the property is sold or liquidated. It’s important to consider capital gains taxes, tax-deferred accounts, and other tax implications when dividing assets.
8. Alimony or Spousal Support:
- Separate from property division: Unlike property division, alimony or spousal support is forward-looking, meant to provide financial support to a spouse after the divorce.
- Alimony is typically based on factors such as the length of the marriage, the standard of living during the marriage, and each spouse’s financial situation.
Consult Divorce Lawyer R. Badet
If you’re navigating a complex divorce with multiple assets or liabilities to divide, Divorce Lawyer R. Badet can help guide you through the process. His extensive experience in complex property division and family law matters ensures that your rights are protected and that you receive a fair and just outcome.
Visit www.lawyersfordivorces.net for more information and to schedule a free consultation.
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