If you are beginning the process of getting a divorce or have been going through the process for some time, you’ve probably read the term “equitable distribution.” The attorneys, the judges, and everyone in between love us to say it. But what does it actually mean to conduct equitable distribution of the marital estate?

In some states, such as California, the law requires an equal division of property. This means the argument is generally limited to the definition of marital versus non-marital property and the values of that property. While that process has its own set of issues and challenges, the State of Pennsylvania takes a different approach.

In Pennsylvania, the law permits the court to “equitably divide” the marital property. This simply means that a judge can deviate from a 50/50 split of the property and give one side a larger portion in the interests of justice.

What are the typical cases when someone gets 55 or 60 percent of the marital property?

There are a variety of reasons why one party will get more or less than 50 percent of the marital estate. Let’s say one spouse worked the entirety of the marriage, while the other was a stay-at-home parent. The working spouse may be retired and draw from a large pension. Or they may still be working and have a long history to rebuild their retirement.

While it’s not perfect, the Court might be satisfied that the stay-at-home spouse gets a larger percentage of marital property at the time of divorce to ensure they are able to sustain themselves at retirement. Whereas the working spouse will have the ability to build up their retirement since they have a higher earning capacity.

What does the Court consider when determining what is equitable?

The statute gives some guidance to this question. Specifically, the court may consider each marital asset independently and apply a different percentage to each asset or group of assets. Factors that are relevant to the equitable distribution of property include:

(1)  The length of the marriage.

(2)  Any prior marriage of either party.

(3)  The age, health, station, amount and sources of income, vocational skills, employability, estate, liabilities, and needs of each of the parties.

(4)  The contribution by one party to the education, training, or increased earning power of the other party.

(5)  The opportunity of each party for future acquisitions of capital assets and income.

(6)  The sources of income of both parties, including, but not limited to, medical, retirement, insurance, or other benefits.

(7)  The contribution or dissipation of each party in the acquisition, preservation, depreciation, or appreciation of the marital property, including the contribution of a party as homemaker.

(8)  The value of the property set apart to each party.

(9)  The standard of living of the parties established during the marriage.

(10)  The economic circumstances of each party at the time the division of property is to become effective.

(10.1) The federal, state, and local tax ramifications associated with each asset to be divided, distributed, or assigned, which ramifications need not be immediate and certain.

(10.2) The expense of sale, transfer, or liquidation associated with a particular asset, which expense need not be immediate and certain.

(11) Whether the party will be serving as the custodian of any dependent minor children.

(23 Pa.C.S.A. §3502(a)(1-11)).

It’s clear from these factors that there are many variables and points of argument for equitable distribution. It takes the hard work of an experienced divorce attorney to properly identify the issues specific to any given case and appeal to the judge for what is fair or “equitable.”

If you are in need of assistance through your divorce, please contact our office, and any one of our attorneys will be happy to help.