When dividing property in a Pennsylvania divorce, several additional factors must be considered: (1) Professional licenses or degrees, (2) pension benefits, (3) personal injury settlements, (4) marital debts, (5) goodwill, (6) future interests, (7) tax implications, and (8) alimony or spousal support.
Professional Licenses or Degrees: While the license or degree itself is not considered marital property, the court may order compensation if one spouse contributed financially to the other’s education or professional license. This compensation is limited to actual contributions, such as paying for tuition or other related expenses, rather than a share of the degree’s value.
Pension Benefits: Pension plans, including 401(k)s and profit-sharing plans, that accumulate during the marriage are classified as marital property and are subject to division, regardless of whether the non-employee spouse directly contributed to them.
Personal Injury Settlements: If a personal injury lawsuit is filed during the marriage or after separation but related to events that occurred during the marriage, the resulting compensation is considered marital property.
Marital Debts: Debts incurred during the marriage are typically classified as marital debts, though separate debts can arise depending on when and how they were incurred. The court will evaluate:
- The purpose of the debt
- Who incurred it
- Who benefited from it
- Who is best suited to repay it
Goodwill: The value of a professional practice or business’s reputation and client base is considered marital property if it can be assigned a specific dollar value.
Future Interests: A potential future interest in property cannot be distributed at the time of divorce.
In contrast to property division, which looks at past financial matters, alimony focuses on future financial needs.
Tax Implications: Payments related to the equitable distribution of property are not taxable at the time of transfer, but taxes may be applicable when the property is sold.
Divorce Lawyer R. Badet is a dedicated and experienced attorney committed to assisting clients through all stages of the divorce process, from simple cases to complex divorces, including issues of spousal support, child custody, and child support. With years of expertise in family law, he is well-equipped to secure the best possible outcomes for his clients. Visit his website for more information on your legal rights or call for a free consultation. A respected litigation attorney, R. Badet represents clients in both family law and criminal law cases.