Divorce and Family Law Office of Joanne Kleiner

Divorce Lawyer Joanne Kleiner

asset division in Pennsylvania

Oct 09

What Are the Types of Divorce and the Litigation Alternatives?

Are There Alternatives to a Divorce in Court?

In 2020, 58,960 couples got married in Pennsylvania, and 28,884 got divorced. Many people are hesitant to proceed with a divorce because of how they perceive the attention, expense and stress of the process. If you’re considering a divorce, a consultation with a divorce lawyer will help you understand the alternatives to a costly, time-consuming and public divorce in a courtroom.

Collaborative Divorce

If you and your spouse are on good terms, a collaborative divorce offers an effective way to end the marriage. It’s designed to reduce the cost and stress of the divorce process. Both parties work with their individual divorce lawyers to resolve issues without the court having to decide for them. In some cases, such as child custody, the parties might work with other professionals in order to work through disputes. The final settlement comes from the decisions made by the two parties and their lawyers. A judge then signs and enters the final settlement into the public record.

Mediation With a Third Party

When you want to stay out of court as much as possible but you and your spouse also have a wide range of disagreements, working with a mediator may be your best option. When you choose this process, a neutral party works to resolve disputed issues. Mediation is common for helping couples make agreeable decisions on spousal and child support, child custody, pet custody and the division of assets.

The mediator doesn’t represent either party. They also don’t make any of the decisions. They simply facilitate communication with the goal of reaching a settlement as quickly as possible. If you choose to use a mediator, you and your spouse will each want to have an attorney. Mediation costs less than having attorneys argue for you in court, and it also gives you more control and privacy over the divorce process.

Arbitration

Using arbitration is another effective option when you and your spouse want to keep your business out of the public courtroom. This process features a private trial in which one or more arbitrators function as a judge. The arbitrators typically have several years of legal experience, and they may be attorneys who do this on a full-time or part-time basis. This type of alternative dispute resolution allows you and your attorney to present your case.

The hearing isn’t as formal as what takes place in a courtroom. Less evidence is required than what a judge would mandate in court. After a hearing, the arbitrator decides on the issues. One or more issues may be discussed at each hearing. The decisions made by an arbitrator can be non-binding or binding.

Using an arbitrator costs more than a mediator or the collaborative process, but it’s less time-consuming and expensive than handling these disputes in court. The downside of using an arbitrator is that you and your spouse lose control over the decision-making process.

Choosing an Alternative to Divorce

Many divorcing spouses start with a collaborative process. If you don’t make any progress on resolving your disagreements, you can then move on to another option, such as a mediator. Working with a mediator doesn’t prevent you from moving on to an arbitrator if the mediator can’t resolve the areas of disagreement.

Some divorcing spouses work their way through all of these court alternatives in order to reduce the cost, stress and publicity surrounding a traditional divorce process. No matter which type of divorce alternative you consider, consulting with an attorney helps you know what to expect and ensures that all documents are in order and filed with the court in a timely manner.

When you’re considering a Pennsylvania divorce, you may benefit from an appointment with attorney Joanne Kleiner. Contact our office in Jenkintown at (215) 886-1266, or fill out our contact form, and an associate will contact you with scheduling options.

Mar 03

How Do You Divide Retirement Benefits After a Divorce?

Who Gets the Retirement Account in a Divorce?

Asset division is one of the most common reasons for disputes during a divorce. If you want to make things a little easier, it’s helpful to understand how retirement accounts are divided during the process.

Are Retirement Accounts Joint or Separate Property?

During a divorce, the main question about any asset is whether it is personal property or marital property. If the retirement account is separate, personal property, then the original owner of it retains control. If the account is a marital asset, it and other types of joint property all have to be split up.

The basic rule for determining what counts as joint property is in part when the property was acquired. Accounts started after marriage are usually marital property. If the account was started before marriage but either spouse contributed money to the retirement account following marriage, a proportionate amount of the account becomes marital property.

A retirement account is usually only personal property if you quit adding funds once you got married. Some types of prenuptial arrangements can also mean that certain retirement accounts remain personal property regardless of whether money is contributed after marriage.

Different Types of Retirement Accounts Are Handled Differently

To figure out how to fairly split retirement accounts in a divorce, you need to pay close attention to the retirement account type. For a traditional IRA or 401(k), it is simple. There are some basic formulas your divorce lawyer can use to quickly estimate how much you contributed and how the property should be divided.

Things get more challenging with defined benefit plans like pensions. These involve an employer providing their employee with a certain amount of money at retirement, and the amount the employee gets is based on how long they work there. Since there is no way of knowing how long a person will continue to be an employee, your lawyer will have to just roughly estimate the value.

Strategies for Dividing Retirement Accounts Fairly

Whenever you are handling retirement accounts in divorce, it is a good idea to be flexible. For many couples, the simplest option is just agreeing that each party keeps all the funds of the retirement account in their name. However, this isn’t always a fair or possible option. Another common choice is offering a cash payment in exchange for complete control of an account. For defined benefit plans, the court along with the plan administrator will require a Qualified Domestic Relations Order. This allows the spouse who doesn’t own the plan to get a certain amount of the plan benefits.

It is also possible to divide the retirement account into two new retirement accounts that each contain a certain proportion of the funds. You could ask to retain control of a retirement account in exchange for other perks. For example, one spouse could take the retirement account while another takes the house. You could even negotiate a lower alimony payment in exchange for a retirement account.

How to Resolve Retirement Account Division Disputes

In an ideal world, you and your ex-partner would be able to quickly and easily find a mutually-satisfactory way to divide up retirement accounts. However, if you and your ex cannot come to a quick agreement on your own, your divorce lawyers can try negotiating. You can send offers and counter-offers to your ex that suggest different asset division strategies.

If this does not work, it might be time to get a neutral party involved. Many people are finding that a mediator can help settle disagreements in a mutually satisfactory way, or you can get a judge to divide the accounts in court. Though there is no guarantee that things will go in your favor, having a judge decide how to divide your retirement accounts can settle arguments once and for all.

Interested in learning more about retirement account division? The Law Office of Joanne Kleiner is here to help Montgomery County residents with their divorces. Call 215-886-1266 or send us a message to arrange a free consultation.