Protecting Assets in a Pennsylvania Divorce
Deciding to end a marital union can be devastating. You may fear what lies ahead, worried that you will lose everything you worked so hard for. The reality may set in that you must begin relying entirely on yourself. Protecting assets in divorce in Pennsylvania can become difficult when marital finances are complicated.
At Mette Attorneys at Law, our divorce lawyers help clients take steps to document and preserve their property interests while preparing for equitable distribution under Pennsylvania law.
Separate and Marital Property
A complete financial record is one of the most important tools for protecting property during divorce. Any assets acquired during the marriage are generally considered marital property under 23 Pa.C.S. § 3501 and are generally subject to division during divorce.
Gifts and inheritances are an exception to the rule. Even if you acquired the gift or inheritance during the marriage, Pennsylvania law deems it separate property. Likewise, property acquired before marriage is typically categorized as separate and is not divided in divorce.
However, commingling a gift, inheritance, or separate property with marital funds, such as placing it in a joint account or using it toward a marital expense, can complicate the determination of what remains separate property. To protect your assets, you’ll need to work with an attorney to prove the origins of your property.
Legal Steps to Protect Property
Clients should preserve financial records, create copies of important documents, maintain access to their own records, and avoid making unusual transactions that could later raise concerns. Useful documents may include:
- Bank statements
- Brokerage statements
- Retirement account records
- Property deeds
- Mortgage statements
- Tax returns
- Loan documents
- Insurance records
- Business financial statements
- Records concerning valuable personal property
It is also important to document marital debts. Credit cards, mortgages, business loans, personal loans, and other obligations can affect the overall financial picture. Keeping copies of statements and payment records can make it easier to determine outstanding balances and identify transactions that require additional review.
Preventing Improper Transfers
Protecting property does not mean hiding it. A spouse should not give away marital property, transfer assets to another person, drain accounts, sell property for less than its value, or move funds with the goal of preventing the other spouse from receiving a fair distribution.
Instead of making financial moves independently, clients should obtain legal guidance from Mette Law before moving substantial assets. Our attorneys can help determine what steps are legally appropriate and can seek court intervention when necessary to protect property from improper disposition.
Professional Valuation
After tracing the origins of assets and categorizing them as separate or marital, the next step is valuation. The valuation process allows spouses to have a clear picture of their finances before dividing assets. Knowing what an asset is worth is vital to fair distribution during divorce, as property may have a substantially different value than the amount originally paid for it.
Professional valuation may be particularly important when spouses disagree about the value of a business or when an asset has increased significantly during the marriage. For example, a business owner may have intellectual property that requires specialized analysis. Retirement accounts may also require careful review to determine the marital portion and the appropriate method of distribution.
Divorce Asset Protection in Pennsylvania
At Mette Attorneys at Law, our divorce lawyers help clients understand how Pennsylvania’s property division laws apply to their financial circumstances and take appropriate steps to preserve their interests. For assistance with your divorce, contact our team today online or by calling 717-232-5000.