EXCLUSIONS FROM MARITAL PROPERTY Pre-marital Property Property acquired prior to the date of marriage is excluded from marital property. 23 Pa.C.S. § 3501(a)(1); Smith v. Smith, 749 A.2d 921 (Pa.Super. 2000). Premarital property which is exchanged for new property during marriage retains its nonmarital nature unless it is re-titled in joint names. 23 Pa.C.S. § 3501(a)(1); Downey v. Downey, 582 A.2d 674 (Pa.Super. 1990). Property acquired to marriage and titled in the name of an individual spouse is excluded from marital property even though both spouses contributed to its acquisition. Bower v. Bower, 531 Pa. 54, 611 A.2d 181 (1992). The increase in value of premarital property from the date of marriage to the date of separation is subject to equitable distribution. 23 Pa.C.S. § 3501; see A.2., “Increase in Value of Nonmarital Property,” above. Gifts and Inheritance Received during Coverture Generally. Property which is acquired by gift, bequest, devise, or descent by an individual spouse is excluded from marital property. 23 Pa.C.S. § 3501(a)(3). Property acquired in exchange for gifted or inherited property is excluded from equitable distribution. Winters v. Winters, 512 A.2d 1211 (Pa.Super. 1986). Gifts and inheritance which are acquired by the spouses jointly are marital property. Gee v. Gee, 460 A.2d 358 (Pa.Super. 1983). is a presumption that gifts or inheritance which are in joint names are intended to be gifts to the marriage, which are marital property. See Section II. E., “Transmutation,” below. Gifts between Spouses. Gifts between spouses are marital property subject to equitable distribution. Note: The Domestic Relations Code was amended in 1988 to provide that interspousal gifts are marital property. Previously, interspousal gifts were excluded from the marital estate. The 1988 amendment was intended to legislatively overrule Semasek v. Semasek, 509 Pa. 282, 502 A.2d 109 (1985). Trial trial
Fexa 578 A.2d 1314 (1990) Dental practice Enduring business with numerous transfers of partnership interests McCabe 575 A.2d 87 (1990) Law firm Enduring business with numerous transfers of partnership interests Butler 621 A.2d 659 (1993) 663 A.2d 148 (1995) Accounting practice Partnership agreement contained a fixed dollar amount for exiting partners Gaydos 693 A.2d 1368 (1997) Dental practice Sole proprietorship 881 A.2d 855 2005) Veterinary Practice Sole proprietorship – purchased for $200K Brody 758 A.2d 1274 (2000) Medical Practice 898 A.2d 1100 (2006) Partnership Fishman 805 A.2d 576 (2002) Accounting Firm Naddeo 626 A.,2d 608 (1993) Law Practice Perlberger 626 A.2d 1186 (1992) Law Practice Shareholder Agreements. Where the shareholder agreement specifies a formula for determining the fair market value of a shareholder’s interest, such agreement might be controlling. Butler v. Butler, 541 Pa. 364, 663 A.2d 148 (1995); Naddeo v. Naddeo, 626 A.2d 608 (Pa.Super. 1993); Buckl v. Buckl, 542 A.2d 65 (Pa.Super. 1988). Professional Degrees and Licenses Professional degrees and licenses are considered in the context of earning capacity but are not marital property subject to equitable distribution. Hodge v. Hodge, 513 Pa. 264, 520 A.2d 15 (1986); Lehmicke v. Lehmicke, 489 A.2d 782 (Pa.Super. 1985). Trial