Financial Issues in Divorce: How Spousal Support and Property Division Work in PA
While the emotional trauma of a divorce is immediate, the financial impact will affect your life for many years in the future. Because of this, it is important to be proactive about preparing your divorce case. With the help of your lawyer, you can navigate alimony in PA, retirement accounts, child support, PA spousal support, and the division of property as your case moves forward.
How Property Is Distributed in a PA Divorce
Unlike community property states, Pennsylvania follows the principle of equitable distribution, not community property. While this means that the property division in Pennsylvania family law is done fairly, it’s not necessarily distributed equally.
Here’s an example of how that might look in practice. Tom and Jill have been married for a decade. They have a house, retirement accounts, personal checking accounts, and cars worth $360,000 after debts are subtracted. While a 50/50 split would give each person $180,000, the court may give Jill slightly more because she spent part of their marriage working as a caregiver for their kids. Besides dealing with the income disparity, this approach ensures the children will have stability when they are with Jill.
Marital property includes almost all assets and debts acquired during the marriage. It doesn’t matter who put their name on the title. On top of homes and real estate, marriage property includes business interests, vehicles, retirement accounts, pensions, furniture, and personal property.
Meanwhile, non-marital property includes all of the assets you and your spouse received before your marriage. It also includes certain kinds of personal injury awards and any gifts or inheritances that were given specifically to one spouse. Additionally, anything excluded by a prenuptial agreement will also be excluded from the division of marital property.
Keep in mind that some assets earn interest over time. If stocks, real estate property, or other assets increased in value during the marriage, this increase may be considered marital property.
When deciding how to divide the family home, bank accounts, and other assets, there are several factors the courts must consider. Under 23 Pa. C.S. § 3502, the judge must look at the age of each spouse, personal health, income levels, the length of the marriage, standard of living during the marriage, and each person’s financial or non-financial contributions to marital property. Tax implications, child custody, and the economic circumstances after the marriage also must be considered. Pennsylvania doesn’t require distribution to be equal, so it’s possible for one spouse to receive more in the divorce.
How Does Spousal Support Work in Pennsylvania?
PA spousal support involves the payments made from one spouse to another before, during, or after a divorce. In Pennsylvania, there are three main types of support.
1. Spousal Support Prior to the Divorce Filing
In many marriages, it is fairly common for one spouse to earn significantly more than the other. Both spouses need to survive financially until everything is filed, and the filing process can take a while. Because of this, the lower-earning spouse is often given spousal support. While there is a specific formula for calculating the amount of this support, the judge has the discretion to adjust this amount as needed.
2. Alimony Pendente Lite (APL)
Once the divorce papers have been filed, the next type of spousal support is APL. This type of support helps to make litigation more even between the lower-earning and higher-earning spouse. It is considered a right and is calculated in the same way as PA spousal support.
Alimony
After the divorce is finalized, a spouse can receive alimony in PA if alimony is granted. The decision to give alimony in PA is made through 23 Pa. C.S. § 3701 and is based on the age of both spouses, the length of the marriage, each person’s earning capacity, the standard of living during the marriage, and similar factors.
Dealing With Child Support During a PA Divorce
Child support is the child’s right in a divorce, so it isn’t something that can be waived. Typically, the non-custodial parent pays child support to the custodial parent. If spouses have shared custody, the person who earns more may still pay child support to alleviate the income disparity.
To calculate child support, Pennsylvania uses an income shares model. This considers childcare expenses, monthly net incomes, how many children are involved, health insurance premiums, and the division of parenting time. While there are basic guidelines provided by the state, these can be adjusted.
Frequently Asked Questions
Over time, our attorneys have found that many divorcing spouses ask a few common questions about the process.
What Is Equitable Distribution?
Equitable distribution refers to the fact that property division in Pennsylvania is done equitably rather than equally. This means each partner will receive a fair distribution, but they might not receive a 50/50 split.
How Are Retirement Accounts Dealt With in a Pennsylvania Divorce?
Retirement accounts are handled like any other asset. However, special care will be taken to determine which contributions occurred before the marriage and which ones occurred afterward. All interest and dividends earned on the account during the marriage are counted as marital property.
What Are the Most Common Financial Issues in a PA Divorce?
While each divorce cause is different, there are a few common financial challenges that must be addressed. When someone has a high net worth, has complex investments, or owns a business, it can make the division of assets more complicated. Similarly, hidden assets, large debts can complicate matters.
Learn More About the Financial Implications of a PA Divorce
When it comes to PA spousal support, it pays to have professional help. Before you undergo property division in Pennsylvania, talk to one of our experienced Pennsylvania divorce attorneys about your rights. You need to make sure your situation is represented accurately before the court so that your financial assets are calculated fairly.
Whether you need help with child support or alimony in PA, the Clause Law Group is here to help. While we are based out of Newfoundland, our legal team can assist with cases in Scranton, Hamlin, Mount Pocono, Gouldsboro, Tafton, Pocono Pines, and the surrounding areas.
Find out more by giving us a call at (570) 676-5212 today.
