First Steps in Dividing Assets in Your PA Divorce
Dividing assets in a divorce is often one of the more stressful steps of the process. Pennsylvania follows an equitable distribution policy, meaning the courts attempt to divide a divorcing couple’s assets fairly between them. This is often easier said than done.
Following these initial steps can help you begin to separate property from your spouse and start moving forward financially.
Pinpoint the Date of Separation
What day did you and your spouse separate and/or begin the divorce process? Write down this date. This will help you determine which assets and debts are considered community property or marital assets and which are separate.
The assets you acquire after the date of separation could be considered separate property. This date is also important in determining the length of the marriage and the start date for spousal support or child support, if applicable.
Close All Joint Bank Accounts and Open Your Own
Begin by opening your own separate bank account and start putting your paychecks and other income into it. This will allow you to begin accruing your own money that is completely separate from your spouse. Furthermore, you won’t have to worry about accidentally stealing from their share of the funds when you begin paying legal fees or other associated expenses from the divorce.
Eventually, you will want to close any joint bank accounts that you share with your spouse. However, in the beginning, you may want to keep a joint account open from which you can pay household and other shared bills until you decide who will be responsible for paying which bills.
Close All Credit Cards and Examine Your Debt
Next, contact your credit card companies and close any shared accounts as well. Open your own credit cards that are solely in your name.
If any of your shared credit cards are in the red, talk to your attorney about how to proceed. Along with dividing assets in a divorce, you must divide shared debts fairly.
Hold On to Pensions and Brokerage Accounts for Now
You may assume that the next step should be to divide pensions or brokerage accounts between you. Instead, hold off on this until you have spoken with your attorney. You may need a qualified domestic relations order (QDRO) to gain permission to divide the accounts between you.
Talk to Your Mortgage Broker About Keeping the House
You may also assume that you will keep the house and that your spouse will find somewhere else to live. While this might be your preference, it isn’t always doable. You should speak with your mortgage broker about the requirements to maintain the mortgage on your own.
If you cannot afford the mortgage based on your finances, you may need to sell the house as part of the property division agreement. Alternatively, perhaps you could sacrifice other assets to keep the house.
Let Karen Ann Ulmer, P.C., Assist in Your Asset Division
Dividing assets in a divorce may feel overwhelming, but our attorneys are here to guide you through this process. We can help with asset valuation and maintain your right to equitable distribution. Contact Karen Ann Ulmer, P.C., today at (866) 349-4149 to book a confidential consultation.
