Going through a divorce is a challenging undertaking for anyone, but it can be more complex for those who have considerable assets. Anyone who’s in this position should be prepared to handle the property division process because this is often one of the most intense aspects of divorcing.
In Pennsylvania, property division is handled based on what’s equitable, or fair. This is much different than the division method of equality that’s present in states that use the community property model for division. Understanding a few points about property division is critical.
Marital assets must be divided
All assets that were acquired during the marriage must be divided based on what’s fair. If there’s a prenuptial agreement that discusses property division, the terms of that document will be followed. Without that, negotiations are the starting point for property division. Both parties must consider any expenses that come with keeping certain assets – like a house – because some put a strain on a single-income budget.
Marital debts also have to be included
The marital assets aren’t all that have to be divided. Debts that were acquired during the marriage have to be divided. Creditors don’t have to abide by the terms of the divorce, so they can still hold both parties accountable for the debt. Some people opt to liquidate assets to pay off those debts so there’s no chance of credit reports being ruined by non-payment.
The property division process must be handled logically; however, emotions can come into the picture with some assets, such as the marital home. Anyone going through this process must take the time to evaluate how division options may impact them now and into the future.