Summary of Division of Property in Pennsylvania

Pennsylvania is referred to as an “equitable distribution state” (as opposed to being a “community property state” as are some other states). This means that a certain type of property, “marital property,” will be distributed “equitably” among the spouses in a divorce. Other property, called separate property, is not divided between the spouses at the time of a divorce and is generally kept by the spouse who originally owned it. Take note that the word “equitable” does not necessarily mean equal or 50/50. It means that marital property will be divided in a fair or just way under the circumstances.

What “marital property”?

The term “marital property” is defined in Pennsylvania Consolidated Statutes, Title 23, Chapter 35, Section 3501. It can be quite complex to determine whether some assets (or appreciation in value of assets) should be considered “marital property.” Thus, it is important to consult an attorney for this purpose.

In general, “marital property” means all property acquired by either party during the marriage and the increase in value of any nonmarital property (a) acquired prior to marriage, (b) in exchange for property acquired prior to marriage, (c) acquired by gift, except between the spouses, (d) acquired by bequest, devise, or decent, or (e) acquired in exchange for property acquired by bequest, devise, or decent.

Nonmarital property generally does not include:

• 1. Property acquired prior to marriage or property acquired in exchange for property acquired prior to the marriage.
• 2. Property excluded by valid agreement of the parties entered into before, during or after the marriage.
• 3. Property acquired by gift, except between spouses, bequest, devise or descent or property acquired in exchange for such property.
• 4. Property acquired after final separation until the date of divorce, except for property acquired in exchange for marital assets.
• 5. Property which a party has sold, granted, conveyed or otherwise disposed of in good faith and for value prior to the date of final separation.
• 6. Certain veterans’ benefits (if this applies to you, see the statute or consult an attorney to determine how specific benefits would be treated).
• 7. Property to the extent to which the property has been mortgaged or otherwise encumbered in good faith for value prior to the date of final separation.
• 8. Any payment received as a result of an award or settlement for any cause of action or claim which accrued prior to the marriage or after the date of final separation regardless of when the payment was received.

• Length of marriage
• Prior marriage
• Age, health, station, income, vocational skills, employability, liability, and needs of each party
• Contribution by one party to the education, training, or increased earning potential of the other party
• Opportunity of the parents to acquire future income and assets
• Sources of income
• The services of each party as a parent, wage earner, or homemaker.
• The value of the property set apart to each party
• The standard of living established during the marriage
• The economic considerations of each party
• Whether the party will be serving as the custodian of any dependent, minor children (See Title 23, Section 3502).