What Factors Influence Equitable Distribution in Asset Division Cases? 

Pennsylvania is an equitable distribution state, meaning that marital property is divided equitably, but not necessarily equally. Instead, the courts aim to divide marital assets and debts in a way that is fair and just. Many factors influence what the court deems "equitable," and understanding those factors can help you better prepare for asset division in your divorce case. 

At Iwanyshyn & Associates, we understand that property division during divorce can be complicated and emotionally challenging. Here, we’ll break down the key considerations that impact equitable distribution and explain how these factors are applied in Pennsylvania. 

Marital Property vs. Separate Property 

In any equitable distribution case, it's essential to identify which assets are marital property versus separate property. Marital property generally includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title. This can include items such as real estate, vehicles, bank accounts, retirement plans, and even certain business interests. 

Separate property, on the other hand, typically includes assets acquired before the marriage or through inheritance or gifts specifically given to one spouse during the marriage. However, it’s important to note that separate property can sometimes become marital property through a process called "commingling."  

For example, if you use an inheritance to purchase a home that is jointly titled with your spouse, the court may consider the property marital for purposes of asset division. The classification of assets is a pivotal issue in equitable distribution, and we work with our clients to ensure that their separate property remains protected. 

Factors the Court Considers in Determining Equitable Distribution 

Pennsylvania law outlines a variety of factors that the courts must consider when dividing marital property. These factors aim to provide a comprehensive view of each party's contribution to the marriage and their financial circumstances after divorce. The primary factors the courts will consider include: 

• Length of the marriage: A longer marriage often leads to a more equal distribution of property since partners are likely to have made intertwined financial and personal contributions over time. 

• Each party's income, earning capacity, and employability: The court will examines the current and future earning potential of both parties. For example, if one spouse is a high earner or has a lucrative career, while the other was a stay-at-home parent or sacrificed career opportunities, this disparity may influence the division of assets to ensure financial fairness post-divorce. 

• Contributions to the marriage: Contributions aren’t limited to income alone. The court will consider non-economic contributions, such as raising children, maintaining the household, or supporting a partner through education or career advancement. These contributions are often just as valuable as monetary ones and can be a critical factor in asset division. 

• Health and age: The physical condition and age of each spouse play a role, particularly if one party has significant medical needs or limited ability to earn a living due to age or health-related issues. The court might adjust property division to account for these circumstances. 

• Standard of living established during the marriage: The courts aim to preserve the standard of living each spouse enjoyed during the marriage as much as possible. This can affect how assets, such as the marital home, are divided or whether spousal support may be awarded. 

• Custodial responsibilities for minor children: If one spouse is granted primary custody of minor children, the court may allocate assets to make sure the custodial parent can maintain the family home or meet the children’s needs more effectively. 

• Each party’s debt and liabilities: Equitable distribution includes dividing assets as well as addressing marital debt. The courts evaluate debt incurred during the marriage and determines how it should be shared between the spouses. 

• Tax implications: Certain assets can come with tax burdens, such as capital gains on investments or penalties for early withdrawal from retirement accounts. The courts consider these tax implications to make sure any division of property does not unintentionally impose a financial hardship on one party. 

• Prenuptial or postnuptial agreements: If a couple has a valid prenuptial or postnuptial agreement, its terms will significantly influence the distribution of assets. These agreements typically outline how property will be divided in the event of a divorce, and Pennsylvania courts generally uphold them as long as they are fair and entered into by both parties willingly. 

It’s important to reiterate that equitable distribution does not necessarily mean a 50/50 split. Instead, the court looks at each couple’s specific circumstances to determine what is fair. This approach emphasizes the importance of working with skilled legal representation that can help you avoid an unfavorable division of assets. 

The Role of Valuation in Asset Division 

Valuation plays a crucial role in the equitable distribution process. This means that all of your assets must be accurately valued in order to determine how they should be divided. The valuation process involves assigning a monetary value to each asset, which can often be complicated and require input from specific experts, such as appraisers, accountants, and financial advisors. 

Some assets may have an easily determinable value, such as bank accounts or stocks. However, other assets like businesses, real estate, retirement accounts, or unique items like artwork or antiques may require more extensive valuation methods. 

The court will consider various factors when determining the value of an asset, including its current market value, potential for future growth or decline, and any tax implications associated with dividing it. At Iwanyshyn & Associates, we are skilled at working with financial experts and appraisers to make sure your assets are accurately valued. 

How Our Firm Can Help 

At Iwanyshyn & Associates, we understand that asset division is a unique process. We are committed to working with you to find the best solutions for your specific case. Some of the ways our firm can help include the following: 

• Identifying and valuing assets: Accurately valuing assets can be a complicated process. Our team has the knowledge and resources to properly identify and value all types of assets to make sure they are fairly divided in the divorce settlement. 

• Negotiating settlements: In most cases, divorcing couples have the opportunity to negotiate a settlement instead of going to trial. Our attorneys have extensive experience in negotiating fair and favorable settlements for our clients. 

• Representing you in court: If negotiations are unsuccessful, our firm is fully prepared to represent you in court. We will use our experience and legal knowledge to fight for your rights and pursue an equitable outcome. 

• Providing support and guidance: Going through a divorce can be emotionally challenging, and having a supportive team on your side can make a considerable difference. Our attorneys will provide you with guidance and support throughout the entire process. 

At Iwanyshyn & Associates, we are committed to guiding you through every step of the property division process with clarity and compassion. We help our clients understand their rights, identify and classify marital and separate property, and present compelling arguments in negotiations or court on their behalf. 

Contact an Experienced Family Law Attorney Today 

If you are facing divorce and wish to gain a better understanding of how your assets and debts will be divided, reach out to an experienced family law attorney today. At Inwanyshyn & Associates, we are committed to helping you pursue an equitable distribution of assets.  

With a location in Allison Park, we serve clients throughout Pennsylvania, including Cranberry Township, Butler County, Beaver County, and the surrounding areas. Contact us today to schedule a consultation.