Archives for March 2023

The Principle of Equitable Distribution in a Pennsylvania Divorce

Common law property states are those that recognize equitable distribution, and Pennsylvania is one of them. With equitable distribution, factors like separate property are considered, and it may also make a difference which of the partners filed for divorce.

There’s a Difference Between What’s Equal and What’s Equitable

Equitable distribution doesn’t mean equal division. Unlike community property states, you’re not going to split everything straight down the middle. Rather, equitable distribution takes the circumstances of both parties into consideration in an attempt to give each person what they need.

There are only nine states in the U.S. that use community property rules, which is the alternative to equitable distribution. In these states, the property is divided as equally as possible without taking into account the amount that each party contributed throughout the marriage.

What Happens in the Process of Equitable Distribution?

With equitable distribution, the process of dividing up your marital property is handled much more delicately by the courts than with community property division. The principles of equitable distribution give weight to what each spouse needs and what kind of means they’re working with after the divorce.

One common situation that comes up with equitable distribution is when one party has ended a career so that they could remain at home and look after the kids. After their marriage has ended, there’s a good chance that they’ll have a harder time supporting themselves financially, so it’s possible that a court may find that this spouse should get a bigger portion of their marital property.

The Process May Be Collaborative or Done Through Your Attorneys

Couples who are getting divorced have the chance to work out how to divide their marital property prior to court intervention in an equitable distribution state like Pennsylvania. This is comparable to how things work in community property states. Keep in mind, though, that whatever the couple decides is still subject to approval from the court.

Sometimes, this process might be done through the spouses’ divorce lawyers. But if both parties are willing and able to work together, it may be done in a collaborative environment. In the event that the couple isn’t able to come to some form of agreement in time, a resolution may be made at the court’s discretion. However, this still must be done within the state marital property law parameters, and a divorce lawyer can provide you with more information about what that might entail.

What Are Some Considerations for Equitable Distribution?

Some of the factors that are considered in equitable distribution include how long the marriage lasted, the spouse who has primary custody of any children who are still minors, and what the financial needs of both spouses are. Courts will also factor in the liabilities that each party has, both presently and going forward. One common example of this is when one person needs to pay for schooling to get their degree in order to make enough money to live on.

Any pensions earned by either party are also taken into consideration with equitable distribution as well as how much was contributed by each of the spouses to the total of their accumulated marital property. Courts will look at things like the individuals’ health, age and special needs along with any child or spousal support obligations that either one of them has to keep up with from previous relationships.

The marital misconduct of either spouse can also come up in equitable distribution. This may encompass any behavior from extramarital affairs, domestic violence or debts that were racked up from gambling.

Of these myriad factors that come into play with equitable distribution, one element that gets excluded from the considerations is premarital property because any personal property that was acquired prior to the marriage doesn’t count towards a marital estate.

If you’re dealing with a divorce in the Jenkintown area, call the Law Office of Joanne Kleiner today at 215-886-1266, and we’ll answer any questions that you might have about marital property and equitable distribution.

Everything You Should Know About Divorce and Social Security Benefits

Each year, roughly 50 million people collect retirement benefits from Social Security. Since these funds are such a big part of most retirement plans, it’s worthwhile to consider them in your divorce. Understanding how divorce impacts Social Security makes it easier to create smart financial arrangements.

Can You Collect Spousal Benefits After a Divorce?

The most important thing to know is that divorce doesn’t change most of the basic Social Security rules. As long as you were married for at least 10 years and have not remarried, you can collect your Social Security spousal benefits just like you normally would. Because the funds that go into Social Security are part of your joint household effort, you are still entitled to receive the benefits after you divorce.

Just like married couples, you can collect up to 50% of the amount of Social Security your ex is eligible for. Your ex cannot keep you from withdrawing benefits based on their Social Security, and the benefits that you collect won’t affect any payments to your ex or anyone they choose to marry. However, you’ll still need to follow the typical eligibility requirements associated with Social Security withdrawals. The process can be confusing, so if you have questions about your Social Security benefits, your Pennsylvania divorce lawyer may be able to help.

Eligibility Details for Ex-spouses

If you meet the main requirement of having been married for at least 10 years and not remarrying, you’ll be able to withdraw from Social Security once a few other eligibility rules are met. First of all, your ex-spouse needs to be able to collect their Social Security funds. They don’t have to be withdrawing benefits yet, but they have to be old enough to withdraw their benefits. If your ex-spouse is eligible to withdraw benefits but has not started withdrawing them yet, you need to be divorced for at least two years.

The other key eligibility detail is that you have to be eligible for Social Security payments. This will mean you need to be at least 62 years old. Keep in mind that your payments will vary depending on how soon you start withdrawing. People who wait until the full retirement age to withdraw will get higher payments. Depending on when you choose to begin collecting benefits, you will get between 32.5% to 50% of the amount your ex gets.

Finally, it’s important to recognize that your own Social Security benefits may impact your ability to withdraw based on your ex’s Social Security. No one is eligible to withdraw two separate Social Security payments. Instead, Social Security will look at all benefits you’re eligible for and only pay you the highest amount. So if your solo benefits are higher than the spousal benefits you get through your ex, you will only get your solo Social Security benefits.

Will Social Security Affect Your Divorce?

Keep in mind that Social Security is different from most other retirement details. Unlike a 401(k), your divorce lawyer doesn’t need to negotiate Social Security withdrawals during your divorce mediation. You don’t need your ex’s permission to get Social Security, and the number of benefits you get won’t affect their withdrawals at all. The government won’t even notify them when you begin withdrawing your spousal benefits.

However, this doesn’t mean you should entirely forget about Social Security during your divorce. Pennsylvania law is all about finding a fair, equitable distribution of assets during divorce. If one spouse is entitled to more Social Security retirement benefits than the other, a 50/50 asset split isn’t always fair. This type of division could mean that one person ends up with a lot more money when they retire. In these cases, your lawyer might be able to help you reach an arrangement where you get additional assets to compensate for your lack of Social Security.

If you have any other questions about divorce and retirement benefits, Joanne Kleiner is here to help. We can assist you in negotiations or mediation and finding a solution that suits everyone’s needs. To learn more about our legal services, fill out our contact form or call us at 215-886-1266