THE IMPORTANCE OF EQUITABLE DISTRIBUTION STATUTE IN VIRGINIA DIVORCE
Virginia Equitable Distribution Statute
Division of assets is the most crucial part of all divorces. Spouses look to acquire fair deals when it comes to the division of marital property and assets. The Statute relating to equitable distribution in Virginia explains how assets can be divided fairly. The Law Offices of SRIS, P.C. has experience in dealing with Statutes relating to equitable distribution in Virginia and can guide you in this context. Countries across the globe, generally, follow one of the following ways to split assets and debts during divorces:
- Community property method: In this case, the judge gathers all the assets earned by the couple throughout their years of marriage and the accumulated wealth is equally divided among the spouses.
- Equitable division method: The statute is drafted based on these methods. Under these circumstances, the court allocates funds and assets in the ways that seem and appear fair, upon considering the current financial statuses of each of the spouses. Most importantly, the Statute relating to equitable distribution in Virginia does not ensure an equal division of assets. Courts in the state are entitled to assure fair division of assets between the marital partners by rendering due considerations to the Statute relating to equitable distribution in Virginia.
The Virginian divorce laws require the judges to decide on the settlement issues and come up with resolutions by strictly adhering to the requirements and norms put forth in the Statute relating to equitable distribution in Virginia. Initially, the spouses opting for marriage dissolution are allowed to solve all disputes regarding the allocation of their wealth, all by themselves. Couples failing to reach consensus related to these matters on their own are tried before the judges, who propose judgments based on the regulations mentioned in the Statute relating to equitable distribution in Virginia.
The Statute relating to equitable distribution in Virginia recognizes a definite set of procedures to regulate the division of assets, which are as follows:
- Assortment of debts and assets into a marital, hybrid, or separate.
- Valuation and estimation of the assets and debts accumulated.
- Division of assets according to the clauses that come under the Statute relating to equitable distribution in Virginia.
Classification of assets
The Statute relating to equitable distribution in Virginia classifies properties under three basic categories and a brief explanation on the same is given herein.
Marital properties
All assets that are jointly owned by both spouses are acknowledged as marital properties under the Statute relating to equitable distribution in Virginia. In a simpler context, an asset that shares titles and those that are registered under the names of both the spouses are regarded as marital properties by the Statute relating to equitable distribution in Virginia. Land or house purchased during the period of marriage is considered as a marital asset even when its registration shows the title of ownership under a single spouse. Land or house is regarded to be acquired within the period of matrimony when its registration takes place after the marriage of the spouses and before their separations. Similarly, the incomes earned by the partners throughout their marriage are presumed as marital assets by the Statute relating to equitable distribution in Virginia.
Therefore, the land or house bought with these joint incomes is marital assets as well. The income generated from marital property and the assets purchased using this income are classified under the marital categories, according to the norms proposed in the Statute relating to equitable distribution in Virginia. If you want to clarify the issue, contact the Law Offices of SRIS, P.C., and speak to our lawyers.
In the past, assets that share features common to that of both marital and separate properties were finally distinguished as marital assets. This procedure prevailed up until the late 1980s. But with the implementation of the Statute relating to equitable distribution in Virginia at the beginning of the 1990s, all assets that fall under these criteria are legally acknowledged as hybrid/part marital/part separate.
The statute relating to equitable distribution in Virginia does not render clear definitions for the term ‘property’. Therefore, Statute relating to equitable distribution in Virginia grants all powers to the court to freely contemplate the definitions of properties. Therefore, judges conceive pieces of jewelry, bank balances, retirement benefits, and allowances as properties as well.
Separate property
The statute relating to equitable distribution in Virginia puts forth the following norms to regulate the classification of properties that come under these categories:
- Assets purchased before the marriage of the spouses.
- Assets solely inherited by the spouses from their acquaintances other than their respective partners, within the period of marriage.
- Earnings acquired from separate assets.
- Income derived through the sale of separate properties.
The income generated from a separate asset as a result of the efforts rendered by both the marital partners is not regarded as a separate property according to Statute relating to equitable distribution in Virginia. A separate property that does not have adequate evidence and traces claiming its nature, is eventually transformed into a marital property due to the blending that takes place as a result of the marriage. All assets obtained after the date of separation of the spouses are presumed as separate assets, as proposed by the Statute relating to equitable distribution in Virginia.
Hybrid properties
An asset that does not have any clear cut conclusion as to it being either marital or separate is acknowledged as a hybrid by the Statute relating to equitable distribution in Virginia. The Virginia distribution statute introduced the concept of the hybrid asset to out rule the discrepancies that prevailed earlier. One such discrepancy is the mandatory treatment of a joint asset as marital property, regardless of it being purchased with the sole investments of a single partner.
A separate property that witnessed an increase in its market value during the period of marriage, due to the efforts rendered by the couple together or by a single spouse, is conceived as a hybrid asset as instructed by the Statute relating to equitable distribution in Virginia. The contributions rendered in these cases can either be physical efforts or financial investments. For instance, properties, that were purchased using the down payments that were solely earned by individuals, before or after their marriages, wherein the installments for the acquired asset were therefrom partly or wholly met by their spouses, fall under the categories of hybrid assets. If you want to know if your asset qualifies under Hybrid property, call the Law Offices of SRIS, P.C., and discuss with our lawyers. They will be able to explain the Statute relating to equitable distribution in Virginia in detail.
Matrimonial partners looking to seek favorable results put forth arguments claiming that the increase in the value of a property was entirely due to the uncontrollable influences of the global economic market. Spouses come up with these strategies to establish the fact that the increment in the value of a property was not observed as a result of the efforts rendered by their partners during the period of their marriages. If you have a conflict of interest, the lawyers at the Law Offices of SRIS, P.C. will be able to resolve the issue based on the Statute relating to equitable distribution in Virginia.
Evaluation of assets and debts
The statute relating to equitable distribution in Virginia requires the couple to present sufficient evidence validating the natures of all properties that are to be divided. Statute relating to equitable distribution in Virginia does not encourage splitting of a separate asset that possesses adequate evidence to support and establish its nature.
The Statute relating to equitable distribution in Virginia ensures fair treatment of debts and properties. The statute relating to equitable distribution in Virginia regards all debts acquired post the date of marriage and before the period of separation as marital debts. All debts received even under the titles of a single spouse are conceived as marital debts, according to the Statute relating to equitable distribution in Virginia. The Statute relating to equitable distribution in Virginia instructs the judges to impose equitable responsibilities, on both the partners, concerning the payments of marital debts and loans after the legalization of the divorce.
The statute relating to equitable distribution in Virginia recognizes the concept of marital waste to assure fair partitioning of the assets. Spouses, who deliberately misuse marital properties and mismanage marital funds to deprive their partners of acquiring an increased financial settlement, are legally accused of the dissipation of the assets. The Statute relating to equitable distribution in Virginia enforces several legal actions upon individuals who are found to be involved in any means of dissipation of marital properties.
All divorces include the process of evaluation that estimates the net worth of the marital assets jointly owned by the couple. Statute relating to equitable distribution in Virginia ensures reasonable allocation of properties between the couple. Therefore, the exact market value of all hybrid and marital assets are assessed and considered for further allocations. Statute relating to equitable distribution in Virginia does not allow courts to declare judgments based on approximate figures and guesses. Statute relating to equitable distribution in Virginia puts forth a definite set of procedures that requires complete fulfillment while evaluating the values of properties. For instance, Statute relating to equitable distribution in Virginia requires the judges to appoint professional appraisers, who have adequate expertise in these fields, to ascertain the values of the assets considered. Statute relating to equitable distribution in Virginia also avails all powers to the couple to render suggestions, regarding the splitting of properties, and the same is duly considered by the juries while making final settlements.
The lawyers at the Law Offices of SRIS, P.C offer assistance to couples who are confused about how to divide their property based on statutes relating to equitable distribution in Virginia. Those who lack finances to meet the expenses of a trial may obtain an assessment from appraisers. The couple has to get into an agreement before all court proceedings. The statute relating to equitable distribution in Virginia instructs the courts to offer increased attention to properties that are brought using mortgage loans. All miscellaneous expenditures including broker charges that are incurred upon the sale of a particular asset are also be considered during several circumstances. The procedures on valuations become complicated when there is the involvement of businesses that include multiple investments, partnerships, and branches.
All assets leaving retirement benefits are estimated and evaluated before the final hearing. All evidence and documents gathered, concerning the classification and allocation of properties, are analyzed by the judges along with the proofs submitted for other settlement issues. Only during rare circumstances, courts allot a separate date to decide on the matters regarding asset division and allocations. Generally, the couples cannot request scheduling of different dates for the assortment of the properties assessed. But the Statute relating to equitable distribution in Virginia grants rights to the spouses to place petitions requesting a different valuation date only during unavoidable cases. The Statute relating to equitable distribution in Virginia imposes several restrictions to place these petitions. Most importantly, Statute relating to equitable distribution in Virginia requires the people to place these requests before 21 days from the date of the proceeding that is specifically scheduled for the division of assets. Any petition submitted within 21 days from the date of hearing will not be considered or processed.
Partitioning of the properties
All the assets considered for divisions are best evaluated and legibly assessed; procedures for the allocation of the same between the spouses begin. Dissolution registered in the family courts belonging to the state is ably monitored by the Statute relating to equitable distribution in Virginia and the enforced divorce laws. All concerns that arise during the division of debts and assets can be legally resolved by the divorce attorneys who have adequate knowledge of the Statute relating to equitable distribution in Virginia. The Statute relating to equitable distribution in Virginia does not entertain equal division of properties in all cases. But the couples opting for marriage dissolution can expect a fair partitioning of their assets due to the implementation of the Statute relating to equitable distribution in Virginia.
The Statute relating to equitable distribution in Virginia instructs the judges to pay attention to the following matters before the declaration of judgments:
- Contributions rendered by both the spouses towards the welfare of their families. The efforts put forth by the marital partners to acquire and maintain properties. These contributions considered can either be in terms of money or physical efforts.
- The Statute relating to equitable distribution in Virginia requires the judges to pay heed to the length and longevity of the marriage.
- The ages, physical, and psychological health conditions of both the parties.
- The grounds and reasons stated for the divorce.
- Statute relating to equitable distribution in Virginia requires disclosure of all necessary details regarding every property purchased, including its date of registration and titles of ownership.
- The Statute relating to equitable distribution in Virginia also requests the courts to render equal considerations to the debts and loans purchased by the couple during the period of their marriage.
- The Statute relating to equitable distribution in Virginia directs the judges to examine and analyze the rate of liquidity of all properties submitted for allocation.
- The Statute relating to equitable distribution in Virginia covers and spans all requisite aspects when it comes to splitting assets. Most importantly, the liability of each marital partner to various taxation is given due considerations during the allotment of assets and debts.
A layman will have no detailed expertise on the clauses that outline a Statute relating to equitable distribution in Virginia. Division of properties can be made easy and fair judgments can be obtained only with the help of legal tools like the Statute relating to equitable distribution in Virginia. Therefore, acquire external assistance from appraisers and divorce attorneys to better meet all legal issues.
Understanding Statute relating to equitable distribution in Virginia
There are several steps involved in Statute relating to equitable distribution in Virginia. Among these, the judge assesses whether the property is separate or marital, or hybrid. According to Virginia Code Section 20-107.3(A), separate is defined as property acquired before the marriage by each of the spouses, property acquired during the marriage either by devise, gift, devise, descent, or bequest by someone else and not your spouse, property acquired in exchange for proceeds of the sale of separate property.
Marital property is a property jointly in the names of the married couple and property bought while in matrimony by either of the spouses and is not separate. Hybrid property is characteristics of marital and separate property as mentioned in Virginia Code Section 20-107.3(A)(3).
As the definitions of the equitable distribution statute indicate, the property cannot be demarcated as separate or marital property in certain instances, especially when the value of the separate property rises during the period of marriage. Any increase during the marital period can be seen as marital property. This is true only when there is a significant effort from both parties. The personal efforts must result in a significant effort of one party that can lead to the appreciation of separate property.
Whenever an increase in property value is determined, the court compares the value to the S&P 500. If you are facing unique circumstances, it is best to check with a skilled lawyer from the Law Offices of SRIS, P.C. on the Statute relating to equitable distribution in Virginia.
The equitable distribution statute goes to prove that marriage is an economic partnership. The equitable distribution statute can be divided into three parts:
- Classifying property as marital or separate
- Assessing the property
- Division of property
In the partition of property, it does not matter who owns the property. All that matters is the date of acquiring the property and the funds used to procure it. The couple is required to disclose their financial situations to the court to determine their position most fairly. To make it fair, the law prescribes each of the spouses to exchange Statements of Net Worth and it has to be accompanied by paycheck and State and Federal income tax returns. If the couple fails to disclose their financial details, it could lead to sanctions or penalties by the court. Post-divorce, the marital property is distributed under the Statute relating to equitable distribution in Virginia.
The Law Offices of SRIS, P.C. can guide you on the Statute relating to equitable distribution in Virginia as our lawyers have experience in handling similar cases.