Virginia Property Division | VA Settling Disputes for Marital and Non-Marital Divorce Assets and Debts

When a couple gets divorced, the courts must sort out everything from the marriage. One of the things to be sorted out is property, leading to Virginia property division.

No divorcing couple should disregard the guidance of a licensed Family Law attorney. A seemingly simple divorce can be very complicated and lawyers have the proper training to tell the judge what a divorcing spouse wants or needs from the property division.

Property Division Divorce Laws in Virginia

The purpose of Virginia property division laws is to make sure that marital property is allocated to each spouse equitably. Virginia marital property can not legally be divided by the court without a request from either party for an equitable distribution of the property. The trial court judge receives great discretion when converting Virginia marital property into separate Virginia divorce property.

Virginia is an equitable distribution state. This means that with regard to Virginia divorce assets, anything the spouses brought into a marriage usually will not be included in Virginia divorce assets or Virginia divorce property. The only property that comes into the court's distribution is that which is legally classified as property of the marriage subject to Virginia Code §20-107.3(A)(2).

What is considered Marital and Non-Marital Property?

Under Virginia Code §20-107.3(A)(2), marital property consists of the following:

All property titled in both parties' names
Part of any property classified as marital
All other property acquired by each party during the marriage not defined as separate/non-marital

Under Virginia Code §20-107.3(A)(1), non-marital or separate property is defined as:

All property, real and personal, acquired by either party pre-marriage
All property acquired during the marriage by bequest, devise, descent, survivorship or gift from a source other than the other party
All property acquired during the marriage in exchange for or from the proceeds of sale of separate property, provided that such property acquired during the marriage is maintained as separate property
Part of any property classified as separate

Dividing Assets and Debt

After the court decides which property is available for distribution, the next step is property valuation. The last step is the allocation of marital property.

Under Virginia Code §20-107.3(E), the court considers a number of factors in dividing assets and debt. Some of these are:

The marriage's length
The parties' age & health
The parties' debts & liabilities
How & when specific items of marital property were acquired
Tax consequences

Using statutory factors, judges decide how a marriage's assets should be divided. Here is a list of the most common property items and the most common allocation scheme used.

Cash: Divided equitably among the spouses.
- Example 1: A joint savings account has $5,000. The court would most likely award a portion of the money to each spouse.
- Example 2: A joint savings account has $5,000. One spouse contributed $4,000 and the other contributed $1,000. The amount may be divided 50-50 or may be more balanced if the $1,000 contributor has fewer assets than the $4,000 contributor.
Retirement Plans: Divided based on the duration of the marriage at the time the benefits accrued, looking at the present value of the plan and/or survivor benefits.
- Example 1: A spouse got benefits in a retirement plan after working for 25 years and was married for 20 of those years. The ex-spouse would be entitled to a portion of the retirement plan that was acquired during the marriage.
- Example 2: A spouse has an unvested retirement plan. No division takes place until the plan is payable to the spouse who has it. However, any part that was earned during the marriage is considered marital property subject to property division.
Vehicles: Divided based on the values at the date of the evidentiary hearing. May be sold or given to a spouse outright.
- Example 1: A car is owned by a spouse The car may be sold with the proceeds divided between each spouse or given to a spouse outright.
- Example 2: A go-kart has a shared title. The go-kart may be sold with the proceeds divided among the spouses or given to a poorer spouse.
Insurance: Determined based upon each spouse's health, availability of alternate insurance and premium payments from marital income.
- Example 1: One spouse has covered the other under employer provided health insurance. The other spouse is in poor health and could not afford alternate health care coverage. The court may order the first spouse to continue covering that spouse for a set time period and/or award money to the ailing spouse to get new coverage.
- Example 2: One spouse has a life insurance policy where the ex-spouse is to get survivor benefits. The spouse may be required to remain on the policy or may receive a portion of the benefits.

Under Virginia Code §20-107.3(C) the court has no power to transfer marital property which is not jointly owned. Instead, a monetary award will most likely take place unless the item is a retirement plan, pension or pertains to receipt of life insurance benefits under §20-107.3(G).

Settling Disputes in a Divorce Case with Property and Asset Division

Virginia Code §20-107.3(K) permits the court to enforce the property division in case a spouse is not cooperating as well as create new orders. Modification of the final property distribution order is in the trial court's discretion.

The trial court's determinations will not be changed by a higher court unless the division was clearly unjust.

Help From a Virginia Property Divorce Lawyer

Retaining a Virginia property divorce lawyer is key to getting the most equitable result in the property division phase of a divorce. The lawyer can provide professional guidance, keep you informed of likely outcomes and help you present the best arguments and presentation to the trial judge handling the divorce.

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