Equitable distribution is the legal principle most states use to divide marital property in a divorce. In so-called equitable distribution or common law property states the court attempts to divide the spouses’ assets equitably (fairly) and may consider the value of a spouse’s separate property in making an unequal division of the spouses marital property.
In deciding what is an equitable distribution of the spouses’ property, the court may consider factors such as the relative education, employability, earning capacities, and separate property assets (acquired before marriage) of the spouses, and whether one spouse’s infidelity or abusive behavior, for example, was a greater factor in the breakup of the marriage.
In contrast, if the spouses live in a community property state the court generally begins with the presumption that the spouses’ marital or community property will be divided equally.
But in practice, the difference between the division of assets in community property states and in equitable distribution states is sometimes not as great as it may seem, as the court in a community property state may have the discretion to divide the spouses’ community property on a 60-40, 70-30, or other unequal basis—and to order one of the spouses to pay all or most of the community debts—based on factors such as the relative education, employability, earning capacities, and separate property assets (acquired before marriage) of the spouses, and whether one spouse’s infidelity or abusive behavior was a greater factor in the breakup of the marriage.
Community property states generally include Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Pennsylvania is an equitable distribution state, which means that in the event of a divorce, marital property is not automatically split 50/50 but is divided in a manner that the court deems fair and just. The court considers a variety of factors to determine what is equitable, including each spouse's income, future earning potential, education, employability, the length of the marriage, and contributions to the marriage, including the care of children and the home. Separate property, which is property acquired before the marriage or by gift or inheritance, is generally not subject to division. The court may also consider the circumstances that led to the dissolution of the marriage, such as infidelity or abuse, when deciding on the distribution of assets. Unlike community property states, where there is a presumption of a 50/50 split of marital assets, Pennsylvania's approach allows for more flexibility and a case-by-case assessment to achieve an equitable outcome.