In Virginia, the division of marital property during a divorce follows the principle of equitable distribution. This method does not necessarily mean an equal split of assets, but rather a fair distribution based on several important factors.
Understanding how these laws might affect your divorce can help you prepare for the process.
How does equitable distribution work?
Equitable distribution in Virginia requires the court to identify, classify and value all marital property. Marital property includes all assets and debts acquired during the marriage, regardless of whose name is on the title. Separate property, which includes assets owned before the marriage or acquired by gift or inheritance, typically remains with the original owner.
Once the court identifies the marital property, it classifies each asset as either marital or separate. Some assets may be partially marital and partially separate, depending on how you managed them during your marriage. For example, a house purchased before the marriage may have gained value due to contributions made during the marriage. In such cases, the court may classify part of the property as marital.
What happens during asset distribution?
After identifying, classifying and valuing the marital property, the court distributes the assets. Several factors influence the court’s decision. These include the duration of the marriage, the contributions of each spouse and how you acquired the assets. The court may also consider the tax implications of the division and the debts each spouse will take on after the divorce.
Why is equitable distribution so important?
Equitable distribution aims to achieve a fair outcome for both spouses. Fair does not always mean equal, however. One spouse may receive a larger portion of certain assets, while the other may receive more in financial compensation. The court’s goal is to ensure that both parties leave the marriage with an appropriate share of the marital property, considering their circumstances and contributions to the marriage.
By understanding how equitable distribution works, you can approach your divorce from a more informed position. This can help you decide if a traditional divorce or a more collaborative method might be more suitable for you and your spouse.
