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During a divorce proceeding, it is pretty obvious that the property and asset distribution will need to be assessed. However, on what basis the property and marital assets should be split, is still a concern for many.
Most states follow an equity-based asset distribution scheme. And Virginia is also one of them.
During an equity-based asset distribution, the courts will decide the liabilities and financial needs of each spouse. And then divide the assets accordingly. It is noteworthy that the split might not be equal or 50/50 between the spouses.
Which Assets Are Countable?
Most spouses going through a divorce are overwhelmed by the thought of asset distribution. And what bothers them the most is the consideration of assets to be split.
To put this into perspective, usually, the property that spouses build together is distributed. However, under certain circumstances, the personal assets may also be considered for splitting.
Though generally, the courts only consider marital property and assets when splitting, if there are kids from the marriage the courts may consider other assets too. In most cases, this happens when one of the spouses is not earning. The courts would then assess the future employment capacity of the non-employed spouse. And also the expenses to sustain their life post-divorce.
Debts are also divided between both spouses, regardless of who owns them. However, the split would vary if the loans are personal or depreciation-based. For example, as mentioned here, https://ephraimlaw.com/separation-and-property-settlement-agreements/, a car loan may not be transferred to the spouse who is not keeping the car after divorce. On the other hand, the home loan may be split between both, regardless of the possession after the divorce is granted.
Notably, the insurance policies and tax liabilities also follow a separation agreement or a divorce grant. And likewise, they must also be split between the spouses. Usually, the insurance benefits are split between the spouses. However, the tax liabilities mostly rest with the individuals depending upon their income and the benefits they receive.
Distributing assets and liabilities between spouses in a divorce is not easy. Though the courts would suggest that both spouses agree on the distribution mutually, it is rarely the case.
Moreover, having a ballpark idea about what the courts will consider during asset distribution could prove to be fatal down the line.
In most cases, involving a divorce attorney is advised, for they not only help with the divorce grants but also ensure rightful distribution of the assets and liabilities. Besides, an experienced attorney would know better which assets to include and which ones not.
On this note, we strongly suggest that you consult with your legal advisor for the same. Of course, divorce is an emotional turmoil. But, it does not have to be a financial struggle as well. And the best way to ensure this is to have a seasoned attorney by your side. Yet, keep in mind that your attorney has experience in dealing with the cases like yours, for every divorce case is different.
This is a collaborative post.
Welcome to Birds and Lilies! I'm Lou: mother, blogger and freelance writer. This is my lifestyle blog, where I talk about motherhood, infertility and IVF, beauty, my love for food and wine, as well as my thoughts about stuff, and our real-life and travel adventures.
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