Dividing property and apportioning debts can be a very significant aspect of a divorce. Virginia follows the concept of equitable distribution, which views marriage as a partnership and requires the analysis of certain factors to determine how to fairly distribute assets and liabilities between spouses. Before property is distributed according to these factors, Virginia law requires a court to first identify the nature, ownership, and value of all assets and debts of the marriage.
What is Marital Property?
Under Virginia Code Section 20-107.3, marital property is characterized as tangible and intangible items that are acquired on or after the date of marriage up until the date the spouses separate from one another. Marital property may also include property, or a portion of property, owned by one spouse prior to the date of marriage if very specific circumstances exist, such as the retitling of premarital property into the joint names of parties during the marriage.
What is Separate Property?
Separate property is property that belonged to one spouse prior to the marriage and property acquired by either spouse after the separation date. Separate property is also property that was given to only one party during the marriage, such as a gift from a third party or an inheritance. Importantly, a Virginia court cannot divide or apportion a spouse’s separate property.
What is Hybrid Property?
Hybrid property is property that is part marital and part separate. Establishing hybrid property often involves a spouse attempting to unravel separate and marital property that has been mixed together or “commingled.” Proving hybrid property is complex and usually requires a spouse to present detailed evidence tracing all asset activity over the course of the marriage.
Valuing Property in a Virginia Divorce
Accurate values for all property and debts must be presented in order for the court to conduct equitable distribution. Account statements are sufficient to show the value for bank, retirement or other accounts held in financial institutions. However, professional appraisers are often needed to assign values to real estate, business interests, or certain valuable personal property items, such as jewelry or artwork.
Factors Considered in Dividing Property in Virginia
Once the court determines if property or debt is marital, separate, or hybrid, and assigns a value, the court must evaluate a variety of factors in deciding how to distribute the property or debt between the spouses. Some of the factors are:
- Length of the marriage
- Age and health of each spouse
- Monetary contributions, such as property, property value, appreciation in property value, income, and separate funds that benefit the marriage
- Non-monetary contributions, such as homemaking, childcare, and other unpaid services
- How and when the property was acquired
- The nature of the debts and why they were incurred
- Whether the property is liquid or non-liquid
- Any applicable tax consequences associated with the property
- Each spouse’s behavior during marriage, including extramarital affairs and criminal convictions
Learn More about Distribution of Property in Virginia
The attorneys at Cooper Ginsberg Gray can assist you with the fair and equitable distribution of property incident to divorce. Each of our lawyers has tried and negotiated numerous cases involving the simplest assets to the most complex cases of distribution of property in Virginia.
Whatever the property distribution issue, our collective experience allows us to approach the matter with the knowledge required for a fair distribution. Contact our office today to learn more about our services.