Property division can be emotional and sentimental attachments can make division of property and assets more difficult. Divorcing spouses may feel entitled to property due to the circumstances of the breakdown of the marriage or simply because they earned more money during the marriage; the reality of asset division can be an eye-opener.

As your divorce lawyer, we provide the perspective and strategies to secure your fair share under Pennsylvania's equitable distribution law. We will guide you to sound decisions that serve your immediate and long-term interests. We can negotiate a practical resolution that lets each of you move on, but are prepared to go to family law court to protect assets worth fighting for. Testa & Pagnanelli, LLC, handles divorce cases in Montgomery County and surrounding jurisdictions in the Philadelphia area. Contact us today for a free consultation at one of our convenient offices in Norristown and Philadelphia.

Discuss your case with one of our experienced property and asset division attorneys in Montgomery County today. Schedule a free consultation by contacting our firm online or by calling 610-365-4733.

Marital Property vs. Separate Property

The first step in property division is to identify what qualifies as marital property. Marital property generally includes income earned during the marriage. Separate property is typically excluded from division during divorce proceedings. If property is classified as separate, the spouse who owns it retains full ownership of that property after the divorce.

However, it can become complicated if separate property has been mixed with marital property. For example, if one spouse owned a home before the marriage but the other spouse contributed to its upkeep or mortgage, the home may be partially considered marital property.

A Montgomery County division of property attorney is invaluable when determining which assets qualify as separate and which are marital. Determining property classification can become contentious, so legal assistance ensures the proper categorization and division.

Equitable Distribution in Pennsylvania

Pennsylvania follows the principle of equitable distribution in divorce cases. Unlike states with community property laws, where assets are split 50/50, equitable distribution allows for a fair division based on several factors, including:

• Length of the Marriage: The longer the marriage, the more likely it is that assets and debts will be divided more equally.
• Earning Potential and Economic Circumstances of Each Spouse: The court will evaluate each spouse’s income and earning potential, as well as their individual financial circumstances, including health and age.
• Contributions to the Marital Estate: Contributions go beyond financial matters. The court considers the value of homemaking, child-rearing, and support of the other spouse's career.
• The Parties’ Health and Age: The physical and mental health of each spouse can impact their ability to earn an income in the future. The court may take these factors into account when determining the division of assets.
• The Standard of Living During the Marriage: The lifestyle during the marriage, and whether it can be maintained after the divorce, is also a relevant factor in determining how property should be divided.
• Debts and Liabilities: The division of debts, such as mortgages, credit card debt, and loans, is also a significant part of the property division process. Debts incurred during the marriage are generally considered marital property, and both spouses are typically responsible for the liabilities, regardless of who incurred the debt.

What Types of Assets and Property are Divided in a Divorce in Pennsylvania? 

We can knowledgeably address everything that may arise in dividing your marital estate:

• The house and other real estate
• A closely held business or professional practice
• Pensions, 401(k) and other retirement accounts
• Stocks and investments
• Vehicles and boats
• Valuables, furnishings and personal possessions
• Property owned prior to marriage
• Gifts and inheritances received during marriage
• Credit cards, loans and other marital debt
• Alimony, custody and child support

The Process of Dividing Property

Property division typically starts with the discovery process. During this stage, both parties are required to provide full disclosure of their financial assets and liabilities. This includes bank statements, tax returns, investment portfolios, retirement accounts, real estate holdings, and any other property or debts. A Montgomery County division of property attorney can assist you in gathering these documents, as well as identifying hidden assets or financial discrepancies.

Once all assets and liabilities are accounted for, the next step is determining their value. This may require the assistance of appraisers or financial experts, particularly for complex assets such as businesses, real estate, and retirement accounts. Our team works with experts in various fields to ensure that all property is accurately valued, and that you are not unfairly penalized by inaccurate or undervalued assessments.

After the property is valued, the lawyer will negotiate with the other party or their attorney to determine a fair division. If the spouses cannot agree on the division of property, the court will intervene. However, it is often preferable to reach an agreement through negotiation or mediation, as it provides the parties with more control over the outcome and may be less costly than litigation.

Foreclosure and Property Division in Montgomery County

The marital residence can be a point of contention, especially if foreclosure is looming. Do you let it go? Pursue a short sale? If one spouse keeps the house, is the other entitled to compensation? These types of circumstances are best tackled with an experienced legal professional, the Montgomery County property division attorneys at Testa & Pagnanelli, LLC can help you make the decisions that best protect your interests moving forward. 

Settling Your Division of Property and Assets Inside or Outside of the Courthouse

Property division commonly involves trade-offs. We help you define your priorities and find creative solutions. In an uncontested divorce, we can draft or review a property settlement agreement to submit to the court for approval. If the other party is playing hardball or if out-of-court settlement negotiations reach an impasse, we are prepared and ready to litigate.

We will personally sit down with you to discuss your goals and the big picture of your marital estate. For a free initial consultation with a Philadelphia division of property attorney, contact us online or call 610-365-4733.