Equitable distribution is determined on a case-by-case basis. "Equitable" does not necessarily mean "equal." Consult a licensed PA attorney for advice on your property division.

Property Division

Pennsylvania is an equitable distribution state — not a community property state. This means the court divides marital property fairly, but not necessarily 50/50. The first step is classifying each asset as marital or non-marital.

Marital vs. Non-Marital Property

Marital Property (Subject to Division)

•Property acquired during the marriage (regardless of whose name it is in)

•Increase in value of non-marital property during the marriage (active appreciation)

•Retirement accounts and pensions earned during the marriage

•Business interests acquired or grown during the marriage

•Joint bank accounts and investments

•Marital home (even if one spouse owned before marriage, the increase in value during marriage is marital)

Non-Marital Property (Generally Excluded)

•Property acquired before the marriage (if kept separate)

•Property acquired after the date of separation

•Gifts and inheritances received by one spouse (if kept separate)

•Veterans' benefits (except disability payments may be exempt)

•Property excluded by a valid prenuptial agreement

•Property acquired in exchange for non-marital property

13 Equitable Distribution Factors

Under 23 Pa.C.S.A. §3502(a), courts must consider these factors when dividing marital property:

Length of the marriage

§ 3502(a)(1)

Prior marriages of either party

§ 3502(a)(2)

Age, health, station, amount and sources of income, vocational skills, and employability of each party

§ 3502(a)(3)

Contribution by one party to the education, training, or increased earning power of the other party

§ 3502(a)(4)

Opportunity of each party for future acquisitions of capital assets and income

§ 3502(a)(5)

Sources of income of both parties, including medical, retirement, insurance, or other benefits

§ 3502(a)(6)

Contribution or dissipation of each party in the acquisition, preservation, depreciation, or appreciation of marital property

§ 3502(a)(7)

Value of the property set apart to each party

§ 3502(a)(8)

Standard of living established during the marriage

§ 3502(a)(9)

Economic circumstances of each party at the time division is to become effective

§ 3502(a)(10)

Federal, state, and local tax ramifications associated with each asset to be divided

§ 3502(a)(10.1)

Expense of sale, transfer, or liquidation associated with a particular asset

§ 3502(a)(10.2)

Whether the party will be serving as the custodian of any dependent minor children

§ 3502(a)(11)

Special Asset Considerations

Retirement Accounts & Pensions

Require a Qualified Domestic Relations Order (QDRO) for division. Only the marital portion (earned during the marriage) is divisible.

Business Interests

May require professional valuation. Both active appreciation and passive appreciation during the marriage are marital property.

Marital Debt

Debts incurred during the marriage are generally divided equitably, regardless of which spouse's name is on the account.

Marital Home

Options: sell and divide proceeds, one spouse buys out the other, or deferred sale (e.g., until youngest child turns 18).

Property Division Tips

Get professional valuations

For real estate, businesses, retirement accounts, and pensions — professional appraisals prevent disputes and ensure accurate division.

Understand QDRO requirements

Dividing retirement accounts (401k, pensions) requires a Qualified Domestic Relations Order signed by the plan administrator. Start this process early.

Document separate property

If you claim an asset is non-marital, you must prove it with documentation: bank statements, gift letters, inheritance records.

Consider tax consequences

Factor 10.1 requires courts to consider tax implications. A $200,000 retirement account is worth less than $200,000 in cash due to deferred taxes.

Do not forget debts

Marital debts are divided equitably too. Credit cards, mortgages, car loans, student loans taken during the marriage are all on the table.

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