Divorce can be a challenging time, especially when it comes to dividing assets. Understanding what you might lose is crucial to planning ahead. Here, we explore the types of assets at risk during a divorce.
Marital property vs. separate property
In Pennsylvania, marital property includes all assets acquired during the marriage. This can range from wages and joint bank accounts to real estate and retirement funds. Even if titled in one spouse’s name, the court can consider high-value items like homes as marital property.
Marital debts also fall into this category. Separate property includes assets acquired before the marriage, gifts, and inheritances. However, if you mix separate property with marital assets, it might become marital property.
Equitable distribution in Pennsylvania
Pennsylvania follows equitable distribution laws. This means courts divide marital property fairly, but not always equally. Judges consider factors like the length of the marriage, each spouse’s income, and contributions to the household. The division considers future earning potential and health of each party too. Marital misconduct affects alimony, not property division. Courts aim to balance fairness with the unique circumstances of each case.
Protecting your assets
A prenuptial or post-nuptial agreement can protect certain assets. These agreements outline how the court should divide property, bypassing standard legal procedures. Without these, courts will follow state laws and consider numerous factors. Consulting a family law attorney can help you understand your rights and options. They guide you through the legal process and help safeguard your assets.
Divorce can lead to significant changes in your financial situation. Knowing which assets might be at risk allows you to make informed decisions. Always seek professional advice to protect your interests.