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Equitable Distribution of Property After Divorce in Virginia
Virginia's laws on marital property division are designed to promote fair and equitable outcomes. The Commonwealth follows the doctrine of equitable distribution to divide marital assets and debts. Essentially, equitable distribution means that a couple's property will be classified as martial property, separate property or a hybrid of the two.
July 28, 2011 /HomeFamily PR News/ -- The stress and emotion of divorce can be compounded by uncertainty over what will happen to property after separation and/or divorce. But, understanding the general concepts of property division in a Virginia divorce can help individuals better understand what lies ahead.
Virginia's laws on marital property division are designed to promote fair and equitable outcomes. The Commonwealth follows the doctrine of equitable distribution to divide marital assets and debts. Essentially, equitable distribution means that a couple's property will be classified as martial property, separate property or a hybrid of the two. The marital property is then divided between the spouses according to the couple's agreement or a judge's order in a manner considered "equitable" to both parties.
What is Marital Property in Virginia?
Marital property consists of all assets or property owned jointly by spouses. It also includes all property, other than separate property, acquired during the marriage. Some examples of marital property include:
- Wages earned by either spouse during the marriage
- A retirement account with funds accumulated during the marriage
- A car purchased during the marriage with money from a joint bank account
- A home titled in the names of both spouses
Because Virginia views marriage as an economic partnership, money or assets acquired by one spouse during the marriage may be classified as the property of both spouses, or marital property. Virginia law presumes that all property acquired by either spouse during the marriage is marital property and that all property is assumed to be owned jointly unless there is a deed or other clear indicator that the property is owned individually by one spouse.
What is Separate Property in Virginia?
Separate property is any asset or property acquired by either spouse before the marriage. In addition, separate property includes items acquired by gift or inheritance during the marriage that one spouse received from anyone other than his or her spouse. Separate property may be:
- A car given to one spouse titled in that spouse's name only
- One spouse's inheritance from a deceased family member
What is Hybrid Property in Virginia?
A third category, called hybrid property, applies to assets or property that are part marital property and part separate property. With hybrid property, a judge identifies two parts of the property that represent contributions to the asset made by either party before and after the marriage.
Equitable distribution of hybrid property can be complex; it is intended to recognize appreciation of an asset's value over time and ensure fairness when property is acquired with both separate and marital funds. The part of the asset that is not marital property is not subject to equitable distribution unlike the part classified as martial property.
An example of hybrid property is a business that one spouse had prior to the marriage but both spouses continued to work in after the marriage. The business assets existing before the marriage are separate property; income from the business after the marriage is marital property. In general, an originally separate asset or property may become hybrid property if it:
- Generates income
- Increases in value
- Is mixed with marital property
Division of Marital Assets and Debts in Virginia
Equitable distribution of marital property uses equal distribution of spouses' marital property as a starting point for allocation of assets. However, property is rarely divided 50-50 between former spouses in a divorce decree. Instead, marital property is distributed in consideration of several factors, set out in the Virginia Code, including:
- The contributions, monetary and nonmonetary, of each spouse to the well-being of the family
- The contributions, monetary and nonmonetary, of each party in the acquisition, care and maintenance of the parties' marital property
- The duration of the marriage
- The ages and physical and mental condition of the parties
- The circumstance and factors that contributed to the dissolution of the marriage, including certain grounds for divorce
- When and how certain items of marital property were acquired
- The debts of each spouse, the basis for the debt and the property serving as security for the debt
- The liquidity of the marital property
- The tax consequences of dividing marital property
- Any dissipation or expenditure of assets or funds in anticipation of divorce
- Any other factors a judge deems necessary or appropriate to consider in order to arrive at a fair and equitable distribution
Divorcing spouses may agree on a property division agreement and submit that to a judge for confirmation of a property distribution plan. If a divorcing couple cannot agree, a judge will create a plan according to Virginia's statutory factors.
While the process is intended to be fair and equitable, it is beneficial to have an experienced family law attorney advocating on your behalf. If you are getting divorced or have questions about marital-property division, contact a knowledgeable family lawyer in your area.
Article provided by Cravens & Noll PC
Visit us at www.cravensnoll.com
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