“Marital property” means all property acquired by either party during the marriage,  and the increase in value of any nonmarital property acquired (1) prior to marriage or property acquired in exchange for property acquired prior to the marriage; and (2) by gift, except between spouses, bequest, devise or descent or property acquired in exchange for such property. 23 Pa.C.S. §3501 (a).

The increase in value of any nonmarital property acquired in this manner is 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 value.

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. 23 Pa.C.S. §3501 (a.1).

“Marital Property” does NOT include:

1. Property acquired prior to marriage or property acquired in exchange for property acquired prior to the marriage. 23 Pa.C.S. §3501 (a)(1).
2. Property excluded by valid agreement of the parties entered into before, during or after the marriage. 23 Pa.C.S. §3501(a)(2).
3. Property acquired by gift, except between spouses, bequest, devise or descent or property acquired in exchange for such property. 23 Pa.C.S. §3501(a)(3).
4. Property acquired after final separation until the date of divorce, except for property acquired in exchange for marital assets. 23 Pa.C.S. §3501(a)(4).
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. 23 Pa.C.S. §3501(a)(5).
6. Veterans’ benefits exempt from attachment, levy or seizure, pursuant to 38 U.S.C.A. 5301, 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.  23 Pa.C.S. §3501(a)(6).
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.23 Pa.C.S. §3501(a)(7).
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. 23 Pa.C.S. §3501(a)(8).

The court equitably divides, distributes or assigns, in kind or otherwise, the marital property between the parties without regard to marital misconduct and in such percentages as the court deems just. Factors which the court deems relevant to the equitable division of marital property include the following:

1. The length of the marriage. 23 Pa.C.S. §3502(a)(1).
2. Any prior marriage of either party.  23 Pa.C.S. §3502(a)(2).
3. The age, health, station, amount and sources of income, vocational skills, employability, estate, liabilities and needs of each of the parties.23 Pa.C.S. §3502(a)(3).
4. The contribution by one party to the education, training or increased earning power of the other party. 23 Pa.C.S. §3502(a)(4).
5. The opportunity of each party for future acquisitions of capital assets and income. 23 Pa.C.S. §3502(a)(5).
6. The sources of income of both parties, including, but not limited to, medical, retirement, insurance or other benefits. 23 Pa.C.S. §3502(a)(6).
7. The contribution or dissipation of each party in the acquisition, preservation, depreciation or appreciation of the marital property, including the contribution of a party as homemaker. 23 Pa.C.S. §3502(a)(7).
8. The value of the property set apart to each party.  23 Pa.C.S. §3502(a)(8)
9. The standard of living of the parties established during the marriage. 23 Pa.C.S. §3502(a)(9).
10. The economic circumstances of each party at the time the division of property is to become effective. 23 Pa.C.S. §3502(a)(10).
11. The Federal, State and local tax ramifications associated with each asset to be divided, distributed or assigned, which ramifications need not be immediate and certain. 23 Pa.C.S. §3502(a)(10.1).
12. The expense of sale, transfer or liquidation associated with a particular asset, which expense need not be immediate and certain. 23 Pa.C.S. §3502(a)(10.2)
13. Whether the party will be serving as the custodian of any dependent minor children. 23 Pa.C.S. §3502(a)(11).

In the case of the marital portion of a defined benefit retirement plan being distributed by means of a “deferred distribution”  method, the denominator of the coverture fraction is the number of months the employed spouse worked to earn the total benefit. The numerator of the coverture fraction is the number of months during which the parties were married and not finally separated. The benefit to which the coverture fraction is applied includes all postseparation enhancements except for enhancements arising from postseparation monetary contributions made by the employee spouse, including the gain or loss on such contributions.  23 Pa.C.S. §3501(c).

In the case of the marital portion of a defined benefit retirement plan being distributed by means of an “immediate offset” method,  the denominator of the coverture fraction is 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. The numerator of the coverture fraction is 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 the postseparation monetary contributions made by the employee spouse, including the gain or loss on such contributions. 23 Pa.C.S. §3501(c).