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One Penn Center, 19th Floor
1617 John F. Kennedy Blvd.
Philadelphia, PA 19103-1895
Phone (215) 665-3000
Fax (215) 665-3165 |
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EQUITABLE DISTRIBUTION AND ALIMONY |
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"Equitable Distribution" is the legal term for the process of dividing marital assets and marital debts. Equitable distribution is basically a three step process: (a) identification of the marital estate; (b) valuation of the assets; and (c) application of the relevant economic factors to determine the actual distribution between the parties.
The marital estate includes all property acquired during the marriage (without regard to title), including the increase in value of any non-marital property. Non-marital property includes such things as pre-marital property, property excluded by prenuptial agreement, gifts and inheritances received during the marriage and property acquired after separation. Although the court utilizes date of separation to identify the marital estate, the presumptive date for valuation of the marital assets/debts is generally the time of distribution.
Equitable Distribution does not presume an equal (50/50) division of marital property. Rather, there are eleven facts enumerated in the Divorce Code to determine how the marital estate is distributed amongst the parties. Those factors include: the length of marriage; whether either party was previously married; whether either party has significant non-marital assets; the age, health and income of the parties; whether either party contributed to the increased earning potential of the other; the standard of living of the parties during the marriage; the tax consequences of any award and whether either party will serve as the custodian of minor children. Fault for causing the end of the marriage is not a consideration in the equitable distribution process.
In Pennsylvania, an award of alimony is only awarded after a divorce decree has been issued and the equitable distribution process has been finalized. Alimony is only awarded if a spouse cannot meet his/her reasonable needs (in accord with lifestyle and standard of living as established by the parties during their marriage), after taking into consideration their income and the assets s/he will receive as part of equitable distribution. An award of alimony is not guaranteed as it is within the discretion of the court. Typically alimony will terminate when the recipient spouse begins residing with another person, remarries or dies.
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