Who will keep the assets? Who will pay the debts? These questions are the foundation of the equitable distribution process, the process by which the court (or the parties, if by agreement) will divide the parties’ assets and liabilities during a divorce.
The first step in the equitable distribution process is identifying marital assets and liabilities and non-marital assets and liabilities. Pennsylvania law defines what is marital property and what is non-marital property. Only marital assets and liabilities are the subject of equitable distribution. Identifying and separating marital from non-marital property is not always easy, and sometime the assistance of experts, such as accountants and appraisers, is needed, particularly when ownership of a business interest is at issue. Our attorneys have the skill and experience to assist you in this process.
Once the marital property is identified, the court will then divide the marital assets and liabilities in a manner that is equitable, or fair. In Pennsylvania, marital fault is not considered in equitable distribution. However, the court does consider many factors, including, but not limited to, the length of the marriage, the ability of each party to accumulate future assets, the education level of each party, the income sources for the parties, etc.
See also Marital Settlement Agreements for more information regarding settlement of economic issues relating to a divorce.
If you have questions about equitable distribution and how this office can help you, please contact one of our attorneys.