Dividing Real Estate in Divorce

Pennsylvania is an equitable distribution state, so the law focuses on dividing marital assets fairly, not necessarily equally. This can be complicated by:

• The lack of premarital agreements: A spouse may have an ownership interest even in a property that is not in their name if they contributed to its upkeep, the mortgage or renovations. Absent a clear agreement about who owns what, determining how to divide the property fairly can be very challenging.
• Disagreements about valuation: Establishing the true value of a couple’s real estate holdings can be hard, but it is essential for an equitable division. This is particularly true when the property generates an income, as is common with rental property and Airbnbs.
• Debts, liabilities and taxes: Dividing real estate can have significant tax consequences, and there may be mortgages and other loans against properties that have to be settled.

The complications are compounded when there are multiple houses to consider, including vacation homes, hunting cabins and undeveloped land.