Pennsylvania is an equitable property division state. When a marriage ends due to divorce, spouses split their resources or ask a judge to decide who keeps what property. Marital assets are subject to division, while separate property has protection from division.
Reviewing financial records to determine what assets are divisible and which ones remain the separate property of one spouse is an important step during divorce. Some spouses have a smooth divorce ahead because they already negotiated a prenuptial or postnuptial agreement. The terms of the contract they signed with one another can guide property division proceedings and may clearly establish that some assets are separate and therefore not subject to division.
Other than resources protected by a marital agreement, what assets are likely separate property during divorce proceedings?
Assets owned before marriage
Many people acquire valuable property before beginning married life. They can potentially keep those assets separate throughout the marriage. Money earned before marriage and various resources, ranging from vehicles and furniture to investments, may remain separate property because people owned them before getting married.
Inherited property and gifts
Frequently, the friends and family members of spouses continue to give them gifts after their marriage. Any presents intended for one spouse, rather than the pair, are separate property. Similar rules apply to inherited property. If a family member leaves an inheritance for one spouse, those assets are the separate property of the heir or beneficiary who received the inheritance.
Commingling can be a concern
Property that could be separate may become a point of contention during divorce if commingling occurs. Commingling involves combining marital property with separate property. If one spouse added the other to the ownership paperwork for previously separate property, those assets may then be marital if the spouses divorce.
Depositing financial gifts or inherited money into a joint account. The use of marital income to improve or maintain separate property can also lead to claims of commingling. Even the unpaid services of the non-owning spouse can potentially raise questions about whether certain assets are still separate property.
Conducting a thorough review of shared resources and conduct that could constitute commingling can help people prepare for property division proceedings. After identifying separate property, spouses can then start planning for the division of their marital property.