One of the biggest concerns people have during a divorce is how assets are divided. Who gets to keep the house? Where does the car go? What happens to all the debt?
All of these questions and more are answered by learning more about Pennsylvania’s equitable distribution model. Here is what you should know:
What is equitable distribution?
Equitable distribution means that marital assets are divided based on what is fair instead of an equal 50/50 division. This helps ensure each spouse keeps a portion of the marital estate based on their unique situation.
Since every marriage is different, there are several considerations to consider when dividing marital assets equitably, including the following:
- How long was the marriage?
- How old is each spouse?
- What is the income and earning capacity of each spouse?
- How much debt does each spouse have?
- How did each spouse contribute to the marriage?
- What is the standard of living for each spouse during the divorce?
- What is the health of each spouse?
- Are there tax considerations?
These considerations can help determine how marital assets are divided.
What assets are not distributed during a divorce?
There are some assets that are not divided during a divorce. For instance, gifts given to a spouse and inheritance are typically not considered part of the marital estate. Assets that were brought into a marriage are typically considered separate property. Additionally, prenuptial or postnuptial agreements can help determine how the marital estate is divided.
Professional legal guidance can help determine how marital assets are divided during a divorce.