Property division can be tricky with home, 401(k)

Now that summer is officially over and the kids are back in school for the fall, it is "official" divorce season. Going through the end of a marriage can understandably be financially challenging and emotionally confusing. However, a couple of tips may help with navigating this type of family law proceeding in Pennsylvania, specifically when dealing with property division issues.

One of the costliest mistakes one spouse can make during divorce is deciding to keep an expensive marital home. Many spouses choose to keep the family home for emotional reasons. However, the expenses to maintain the home may not be sustainable in the long term.

In addition, obtaining a court order is essential for accessing a portion of an ex-spouse's 401(k) plan. This court order is known as a qualified domestic relations order, or QDRO. Another move that may be personally beneficial following divorce is for spouses to take out life insurance policies on exes who are paying support. This is critical in that if the party obligated to pay child support passes away and their payments stop as a result, the life insurance proceeds can ensure that any children affected will continued to be cared for financially.

Property division can be a sticky aspect of any divorce proceeding in Pennsylvania, as two spouses may not readily see eye-to-eye on how their assets should be divided. However, if they are willing to find common ground, they may find it useful to engage in direct negotiations or mediation rather than going to trial. Otherwise, traditional divorce litigation will be necessary for sorting out their asset distribution issues, with a judge ultimately making the important decisions for them in this area.

Source: barrons.com, "Protect Your Clients During 'Divorce Season'", Sept. 22, 2017

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact The Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Stewart, McArdle, Sorice, Whalen, Farrell, Finoli & Cavanaugh, LLC

Greensburg Office
229 South Maple Avenue
Greensburg, PA 15601

Toll Free: 866-601-9627
Phone: 724-610-9914
Fax: 724-836-2038
Greensburg Law Office Map

Crabtree Office
Crabtree Branch Office
Rt. 119 North
Crabtree, PA 15624

Toll Free: 866-601-9627
Phone: 724-610-9914
Fax: 724-836-2038
Map & Directions

Ligonier Office
Ligonier Branch Office
610 West Main St.
Ligonier, PA 15658

Toll Free: 866-601-9627
Phone: 724-610-9914
Fax: 724-836-2038
Map & Directions

Contact The Firm