Knowing what is and what is not “marital property” is vital to a satisfactory outcome when filing for divorce in Pennsylvania. Pennsylvania’s statutes define “marital property.” While the statute excludes specifically certain types of property, most divorces concern two kinds of marital property:
- property that you acquired during your marriage as an individual or jointly with your spouse; and
- the increase in the value of property that you had when you got married and continued to own during your marriage.
An example of the first kind of property is a car that you bought in your own name after you got married. Even if you titled the car only in your name or you used your own money from your individual bank account to pay for it, the car is marital property. An example of the second kind of property is a car that you owned when you got married. In that case, only the increase in the value of the car during your marriage above the value of car before you got married is considered marital property.
Marital property means more than just a physical object, like your house or your car. It can also mean things like your right to money damages because of a car or work accident or a broken contract. If the accident occurred when you were married but before the date of your final separation, the right to that money is marital property. It does not matter whether you were paid a settlement on that claim after your divorce. The settlement money is still marital property.
Not every piece of property that you acquired after you were married is considered marital. Any kind of property that you acquire after your “final separation” using your own funds is not marital. So, if you bought that car after you separated from your spouse with money that you earned after you separated, then the car is yours. Your spouse has no claim to it. On the other hand, if you bought that car after you separated and you used joint funds, then the car is marital property.
Marital property is more than just what you own. It also is what you owe to creditors, like banks and credit card companies. Debts like those are considered marital debts, even if your spouse ran up charges on his or her personal credit card during your marriage and before final separation without your knowledge or consent. While, you may not be liable to the bank for those kind of debts, those debts are considered marital obligations. Responsibility for those debts will be divided between you and your spouse. The key in all of these situations clearly is figuring out the date of final separation.
Since Pennsylvania does not recognize the idea of “legal separation,” the date of your final separation may be as late as the date when you or your spouse filed for divorce. It may also be as early as the date when you stopped living under the same roof. However, when you and your spouse continue to live under the same roof, the courts will have to decide the date of your final separation. In those situations, there are several facts that Pennsylvania courts will consider when figuring out the date of your final separation. Whether and when you and your spouse stopped presenting yourselves as a married couple is significant. The date when you separated your finances, if you held joint bank accounts during your marriage, is also relevant. The date when you stopped sharing a bedroom or having sexual relations matters too. Even something as simple as whether you and your spouse grocery shop, cook, or eat together can be important.
Practically speaking, the date of your final separation will determine when you and your spouse stopped acquiring marital property and stopped getting into marital debt. For spouses, who own or control most of the marital assets or who incurred the least amount of individual debt, advocating for the earliest date of final separation is important. Conversely, for spouses, who do not own or control most of the marital assets or who incurred most of the marital debt, advocating for a later date of final separation is critical.
If you are not sure about your marital property or obligations or you have any questions about marital property, please contact Gregory J. Spadea, Esquire, at 610- 521-0604 at the Law Offices of Spadea & Associates LLC for a free 20-minute consultation.
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