We gave up on the math of it all. It boils down to this- the Fighter needs a +more sword and one comes up, we give it to him, his old one goes into the loot and is sold. Sometimes he can keep it as a spare, but seldom is that.
Arcane spell casters get the scrolls and wands, etc without complaint, it just goes to them.
Divine scrolls and wands is the same.
Potions- given out, spreading the wealth.
Coins, gems, jewels, etc - divided to the mass of (N)PCs as equal shares, the group that has homes gets an extra share to give to their home.
No one in our group is so greedy or stupid to screw over the others by trying to horde a few extra swords or whatever, the groups are pretty much of the mind that "what helps my team mate, helps me."
We did at one time hold a +2 Short Sword over our 2nd lvl Rogues head, oh, she got to use it, but got nothing in the line of loot from group splits. She started stealing from the group and sneaking off to loot rooms alone. Pissed off one Player, I understood, and my character was helping her do it. She was never caught, cause two Players stood up tot eh third and got her an equal share again.