2010 Pennsylvania Code
Title 23 - DOMESTIC RELATIONS
Chapter 35 - Property Rights
3501 - Definitions.

                                CHAPTER 35
                             PROPERTY RIGHTS

     Sec.
     3501.  Definitions.
     3502.  Equitable division of marital property.
     3503.  Effect of divorce on property rights generally.
     3504.  Disposition of property after termination of marriage.
     3505.  Disposition of property to defeat obligations.
     3506.  Statement of reasons for distribution.
     3507.  Division of entireties property between divorced persons.
     3508.  Conveyance of entireties property to divorced spouse.

        Enactment.  Chapter 35 was added December 19, 1990, P.L.1240,
     No.206, effective in 90 days.
        Cross References.  Chapter 35 is referred to in section 3701
     of this title.
     § 3501.  Definitions.
        (a)  General rule.--As used in this chapter, "marital
     property" means all property acquired by either party during the
     marriage and the increase in value of any nonmarital property
     acquired pursuant to paragraphs (1) and (3) as measured and
     determined under subsection (a.1). However, marital property
     does not include:
            (1)  Property acquired prior to marriage or property
        acquired in exchange for property acquired prior to the
        marriage.
            (2)  Property excluded by valid agreement of the parties
        entered into before, during or after the marriage.
            (3)  Property acquired by gift, except between spouses,
        bequest, devise or descent or property acquired in exchange
        for such property.
            (4)  Property acquired after final separation until the
        date of divorce, except for property acquired in exchange for
        marital assets.
            (5)  Property which a party has sold, granted, conveyed
        or otherwise disposed of in good faith and for value prior to
        the date of final separation.
            (6)  Veterans' benefits exempt from attachment, levy or
        seizure pursuant to the act of September 2, 1958 (Public Law
        85-857, 72 Stat. 1229), as amended, except for those benefits
        received by a veteran where the veteran has waived a portion
        of his military retirement pay in order to receive veterans'
        compensation.
            (7)  Property to the extent to which the property has
        been mortgaged or otherwise encumbered in good faith for
        value prior to the date of final separation.
            (8)  Any payment received as a result of an award or
        settlement for any cause of action or claim which accrued
        prior to the marriage or after the date of final separation
        regardless of when the payment was received.
        (a.1)  Measuring and determining the increase in value of
     nonmarital property.--The increase in value of any nonmarital
     property acquired pursuant to subsection (a)(1) and (3) shall be
     measured from the date of marriage or later acquisition date to
     either the date of final separation or the date as close to the
     hearing on equitable distribution as possible, whichever date
     results in a lesser increase. Any decrease in value of the
     nonmarital property of a party shall be offset against any
     increase in value of the nonmarital property of that party.
     However, a decrease in value of the nonmarital property of a
     party shall not be offset against any increase in value of the
     nonmarital property of the other party or against any other
     marital property subject to equitable division.
        (b)  Presumption.--All real or personal property acquired by
     either party during the marriage is presumed to be marital
     property regardless of whether title is held individually or by
     the parties in some form of co-ownership such as joint tenancy,
     tenancy in common or tenancy by the entirety. The presumption of
     marital property is overcome by a showing that the property was
     acquired by a method listed in subsection (a).
        (c)  Defined benefit retirement plans.--Notwithstanding
     subsections (a), (a.1) and (b):
            (1)  In the case of the marital portion of a defined
        benefit retirement plan being distributed by means of a
        deferred distribution, the defined benefit plan shall be
        allocated between its marital and nonmarital portions solely
        by use of a coverture fraction. The denominator of the
        coverture fraction shall be the number of months the employee
        spouse worked to earn the total benefit and the numerator
        shall be the number of such months during which the parties
        were married and not finally separated. The benefit to which
        the coverture fraction is applied shall include all
        postseparation enhancements except for enhancements arising
        from postseparation monetary contributions made by the
        employee spouse, including the gain or loss on such
        contributions.
            (2)  In the case of the marital portion of a defined
        benefit retirement plan being distributed by means of an
        immediate offset, the defined benefit plan shall be allocated
        between its marital and nonmarital portions solely by use of
        a coverture fraction. The denominator of the coverture
        fraction shall be the number of months the employee spouse
        worked to earn the accrued benefit as of a date as close to
        the time of trial as reasonably possible and the numerator
        shall be the number of such months during which the parties
        were married and not finally separated. The benefit to which
        the coverture fraction is applied shall include all
        postseparation enhancements up to a date as close to the time
        of trial as reasonably possible except for enhancements
        arising from postseparation monetary contributions made by
        the employee spouse, including the gain or loss on such
        contributions.
     (Nov. 29, 2004, P.L.1357, No.175, eff. 60 days)

        2004 Amendment.  Act 175 amended subsec. (a) and added
     subsecs. (a.1) and (c). See section 5(6) of Act 175 in the
     appendix to this title for special provisions relating to
     applicability.
        Equitable Distribution Proceedings.  Section 1 of Act 4 of
     2005 provided that subsec. (c) shall apply to all equitable
     distribution proceedings pending on or after the effective date
     of section 1.