The Emotional Toll of Asset Division
Divorce is often a challenging and emotional process, particularly when it comes to dividing assets. Asset division is tough for couples because many possessions have emotional significance.
These aren't just things; they're tied to memories and important moments shared in the relationship. Items like the family home or a jointly built collection hold nostalgia, making them hard to give up. This emotional attachment can lead to conflicts, as each person may want to keep items that symbolize their shared history.
Beyond emotions, the effort put into acquiring these assets complicates their division. Couples work hard over the years, making sacrifices to accumulate possessions, which leads to a strong sense of ownership.
What Happens to Season Tickets in a Divorce?
When dividing assets that have significant monetary value and that are tied to cherished experiences, couples may struggle even more with negotiating a property settlement agreement. Season tickets often fall into this category.
For many fans, these tickets are a link to years of shared experiences, tailgating traditions, and the thrill of game day. Even for spouses who may not be avid fans themselves, the tickets can represent a significant financial asset or a potential bargaining chip in negotiations. So, who gets the season tickets in a divorce?
In this blog, we will discuss how assets are divided in Pennsylvania divorces (when it is left to the court to determine), as well as how couples may decide to share the assets.
Marital Property in Pennsylvania
To understand how season tickets might be handled in a divorce, it's essential to first grasp the concept of marital property in Pennsylvania. The state follows equitable distribution principles when it comes to dividing assets in a divorce. Equitable doesn't mean equal, and assets won't necessarily be split 50/50 with this model. The goal of equitable distribution is to be fair to both parties.
In Pennsylvania, marital property generally includes all assets and debts acquired by either spouse during the marriage, regardless of whose name is on the title or account. This can include (but is not limited to):
- Real estate
- Vehicles
- Bank accounts and investments
- Retirement accounts
- Businesses
- Pets
It's important to note that the timing of the purchase of season tickets can affect whether they're considered marital property. If the tickets were purchased during the marriage using marital funds, they would likely be considered marital property subject to division. However, if one spouse owned the tickets before the marriage and maintained them separately throughout, they might be considered separate property.
Negotiating Ownership of Season Tickets in a Divorce Settlement
When it comes to season tickets, many couples find that negotiation is the best path forward. This allows both parties to have a say in the outcome and can lead to more satisfactory results than leaving the decision to the court. Couples may agree to the following:
- Equal sharing agreement: Some couples agree to continue sharing the tickets post-divorce. This might involve alternating games or seasons or dividing the season's games between them. While this requires ongoing cooperation, it can be a fair solution for couples who can maintain an amicable relationship.
- Buyout option: One spouse might offer to buy out the other's share of the tickets. For example, with Philadelphia Eagles season tickets starting at $1,587 and averaging $2,145, one spouse might offer to pay the other half or the entirety of the ticket's value to retain full ownership.
- Negotiating using assets of equal value: Season tickets can be used as a bargaining chip in overall asset division. For instance, one spouse might agree to give up their claim to the tickets in exchange for a larger share of another asset, such as a retirement account or equity in the family home.
- Sell and split proceeds: If neither spouse can afford to maintain the tickets post-divorce or if an agreement can't be reached, selling the tickets and splitting the proceeds might be the fairest option.
It is worth noting that the actual value of season tickets can exceed their face value, especially for popular teams like the Eagles. The secondary market, the potential for playoff games, and the difficulty of obtaining new season tickets can all factor into their true worth.
Factors Courts Consider in Asset Division
If couples cannot reach an agreement on their own, the court will make the decision as part of the overall property division process. In Pennsylvania, courts consider several factors when dividing marital assets, including:
- The length of the marriage: Longer marriages often result in a more equal division of assets.
- Each spouse's age, health, and earning capacity: This can affect how much each spouse needs to maintain their standard of living post-divorce.
- Each party's contribution to the acquisition of marital property: This includes non-monetary contributions, such as being a homemaker.
- The standard of living established during the marriage: Courts aim to help both parties maintain a similar lifestyle when possible.
- The economic circumstances of each party at the time of division: This includes considering each spouse's income, assets, and debts.
- The tax consequences of the property division: Some assets may have different tax implications when divided or liquidated.
- The value of any non-marital property allocated to each party: This can affect how the marital property is divided based on the value of your separate assets.
When it comes to season tickets specifically, a court might consider additional factors such as:
- Which spouse primarily used the tickets during the marriage
- Whether the tickets have a connection to one spouse's business or networking activities
- The relative importance of the tickets to each spouse's lifestyle and interests
- The financial ability of each spouse to maintain the tickets post-divorce
It's important to remember that courts aim for an equitable, not necessarily equal, distribution of assets. This means that even if season tickets are deemed marital property, they won't automatically be split 50/50 or alternated between spouses.
For help preparing a property division agreement, reach out to Cairns Law Offices. Call (888) 863-9115 today.