Division of Property Lawyers in Manassas

Virginia has adopted the law of equitable distribution for the division of marital assets and liabilities in divorce. Marriage is seen as an economic partnership. Under Virginia law, property and debts must be categorized as separate, marital, or part separate and part marital. The marital assets and liabilities must be valued and divided equitably and not necessarily equally.

Classification of Property

Marital property refers to all jointly owned property and all other property obtained from the date of the marriage to the date of separation. Some common examples of marital property are the marital home titled in the names of both partners, or a retirement account that was created during the marriage, even though the account is only in one spouse’s name.

Separate (aka “nonmarital”) property is defined as all property acquired by either spouse prior to the marriage as well as all property acquired during the marriage as an inheritance or gift from someone other than the spouse.

Some common examples of nonmarital property are a vehicle given to one of the spouses by a parent and titled in the name of the receiving spouse, an inheritance from a relative, and cash gifts from third parties, but only if such inheritances and gifts are maintained separately from other marital assets. Marital property includes gifts from one spouse to the other, such as jewelry.

Part marital and part nonmarital is the third category of property. In this category, the application of the law is usually very complex. Following are some examples of property that is considered comingled:

1. Income received from nonmarital property during the marriage, but only if such income can be attributed to the spouse’s individual effort. For instance, if one spouse inherits a family business before or during the marriage and both spouses work in the enterprise producing income, such income may be seen as marital property, notwithstanding that the enterprise is nonmarital property.
2. Any increase in the value of nonmarital property during the marriage may be considered marital property to the degree that marital property or the personal efforts of either spouse contributed to such increases. Such personal efforts may be significant and result in substantial appreciation. For instance, if one party owned a business prior to the marriage, and during the marriage, either spouse, through personal effort, caused the property value to increase significantly. The increase in value may be considered marital property.

Marital Debt

The entire marital estate of the couple may be divided by the court, including the assets and liabilities. Similar to marital property, any debt acquired by either spouse during the marriage is a part of marital debt. In the event that either party acquired a separate debt, the court will direct that spouse to repay it.

For instance, if a couple uses a joint credit card to pay for a new roof on the marital home, the court will hold both parties liable for the debt. But if one partner acquired a debt before the marriage, following the couple’s separation, or did not use it for the marriage, the judge will most likely classify the debt as that party’s responsibility.

Courts can’t alter the agreement that spouses have with private lenders. Therefore, even if a court directs your spouse to pay a joint debt, the lender can and most likely will come after you for repayment if your spouse does not pay. For this reason, it is in the best interests of each spouse to transfer debts that they are responsible for into their name only to the extent that this is possible. If your spouse (or ex-spouse) fails to pay a debt and the lender comes after you to pay it, then you would need to bring your ex to court in order to obtain reimbursement from them.

Valuation

In general, the value of marital assets and marital debts is determined by the date of the trial or evidentiary hearing. But there are certain exceptions to this rule. Additionally, a spouse may request the court to use a different valuation date. Depending on the specific situation, such a request may be granted.

It can be complex to value the marital share of certain retirement assets and may warrant the use of a valuation date rather than the date of trial. In such plans, the marital share consists of contributions to the plan and income on those contributions from the marriage date to the separation date. There may be additional adjustments to value due to market changes.

Division of Marital Assets and Liabilities

In dividing marital property and debts, the following aspects require consideration:

• The monetary and non-monetary contributions of each spouse to the welfare of the family.
• The monetary and non-monetary contributions of each spouse in the acquisition and upkeep and maintenance of such marital property of the couple.
• The length of the marriage.
• The physical and mental condition and ages of the parties.
• The factors and circumstances that led to the end of the marriage, particularly including specific grounds of divorce.
• How and when specific items of such marital property were obtained.
• The liabilities and debts of each party, the reason for such liabilities and debts, and the property which may serve as collateral for such liabilities and debts.
• The liquid or non-liquid nature of all marital property.
• The tax implications of dividing marital property.
• The expenditure or use of the marital property by either of the spouses for non-marital separate purposes or the dissipation of such money when it was done in anticipation of separation or divorce or after the last separation of the couple.
• Other factors that the court considers appropriate or necessary to arrive at a just and equitable monetary award.

An equitable division of marital property and debts does not necessarily amount to an equal division. These factors help the court establish how the assets and liabilities acquired during the marriage should be equitably divided.

Speak to a Dedicated Virginia Divorce Property Division Lawyer

The signing of a Property Settlement Agreement (PSA) forms the core of a number of Virginia divorce cases. Therefore, it is vital to ensure that it is drafted properly. Remember never to sign a PSA or another agreement with your spouse, irrespective of how insignificant it may seem, without consulting your lawyer.

There are multiple facets to property division in a divorce case in Virginia. The experienced lawyers at Olmstead and Olmstead can offer strong legal representation and ensure that your future is protected during a divorce case. For a free consultation, message us online or call our office today at (703) 361-1555.