Marital Property vs Separate Property — What's the Difference?

Marital Property vs Separate Property — What’s the Difference?

When dividing property in a divorce in PA, both assets and debts must be determined to be either marital or non-marital in nature. Non-marital, or separate, property or debts are not divided between spouses. But it is not always completely clear which category something falls into.

Pennsylvania is an equitable liability state, which means if your divorce goes to court, a judge will decide who gets what and how much. You will need to make a complete list of your property and your debts, then discuss with your attorney the history and usage of each in order to determine its status as separate or joint property.

Marital or Non-Marital

The simplest definition of marital property is the assets and debts that have been used by both spouses or for the benefit of the family. Some examples include:

• Family homes, vehicles, vacation homes, timeshares, furniture
• Any other assets and debts acquired during the marriage that were used by the family or to benefit the family
• Retirement accounts, insurance, pensions, etc.
• Gifts one spouse gives to the other
• Digital shared accounts, such as entertainment (iTunes, Netflix, ebooks on Kindle), family email and social media accounts, virtual property, medical portals, and school portals for minors
• Financial accounts, investments, taxes, and credit cards that are in both names. Money in an account that is only under one name does not necessarily belong only to that person if the money was used for the family

Non-marital or separate property may include:

• Property or debts acquired before marriage that have not been used by the family and from which the family has not benefited
• Inheritance that has not been used by the family or commingled with family finances
• Gifts received by a spouse from someone other than the spouse
• Assets or liabilities covered by a written agreement specifically stating they are not marital property

The Gray Areas

The definition of non-marital property is somewhat subjective, which is why you will need a skilled divorce attorney to help you with your situation. If you incurred educational debt before marriage but the family has benefited from your education, any remaining balance becomes marital debt and your ex will share in that debt.

If you received an inheritance or a gift before you were married but subsequently used some of it for the family, it becomes marital property. If, for instance, you were given a house and your spouse helped with repairs, or your spouse’s income was used in part to pay for upkeep, or if it became a family vacation home, it has become marital property.

If you started a business before you were married but your spouse supported you as you built it up or worked at the business with you, it has become marital property.

Proving non-marital or separate property can be a challenge. If you have not kept assets acquired outside the marriage in a separate account in your own name or avoided using any for the family’s needs, these assets will likely be considered marital. This is not always true with debt if you can prove that the person who incurred the debt did so to benefit only themselves. For instance, if your spouse goes on spending sprees to buy personal items or racks up gambling debts, we can help you prove that the debt belongs solely to your spouse.

In situations involving assets that you acquired before marriage or were gifted, we will work with you, asking the right questions and examining usage history to limit the division of your property and help you keep as much of your assets as possible.

At Law Offices Of Blitshtein & Weiss, P.C., we are well-versed in the field of family law, divorce, and the division of property. Call us today at our Southampton office at (215) 364-4900">(215) 364-4900 to see how we can help you receive the best and fairest division of assets in your divorce.