If you opened this article, it’s likely you’re considering a divorce. Out of the hundreds of questions people have, by far the most common are:
- What happens to our money and assets in a divorce?
- How can I protect my assets during divorce proceedings?
Of course, there are other considerations, such as finding an experienced divorce lawyer. Or you may be wondering about separation agreements and pensions and how to protect your 401(k) in a divorce. Let’s focus on today’s issue and look at assets and how they are divided during a divorce proceeding in the state of Virginia.
What Is An Asset?
Financially speaking, assets are anything that has monetary value. Your bank account is an asset, as is your retirement account. But it’s not just accounts that have value. Houses, cars, boats, recreational vehicles, furniture, and collectibles are all assets, as you can exchange them for money.
How Does Virginia Divide Assets? Can I Protect Them?
Like many others, Virginia is an equitable-distribution state. As a result, assets are divided fairly in a divorce—although not necessarily 50/50, as in some other states.
There are many factors considered during the division of assets, such as the length of the marriage, financial status of both parties before, during and after the divorce, and who has custody of the children.
There are two types of assets in a divorce. Marital property is anything acquired during the marriage; separate property is anything received beforehand.
The best way to protect your assets is to gather paperwork on anything you acquired before your marriage. The state of Virginia considers any asset acquired before marriage to be separate property.
If you’re wondering how to protect your 401(k) in a divorce, you’ll be happy to know that any 401(k) contributions made before your marriage are yours. Only the contributions made to the account after the marriage began are marital property subject to division.
Can I Hide My Money Or Spend It Before The Divorce?
It needs to be said that you should not, under any circumstance, attempt to spend all of the money in an account, destroy property, or hide assets before a divorce. If evidence of such is discovered by the court, you are very likely to receive a highly unfavorable ruling when it comes to the equitable division of assets under Virginia law.
Furthermore, you could be subject to criminal charges as well. It’s always best to speak with an attorney before changing, modifying, or selling any asset if you are considering divorce.
Conclusion
Divorce is never an easy topic to approach, and it can be a complicated and messy process. With the hundreds of questions that often swirl around in the head of someone who is going through the stressful period leading up to a divorce, it’s always best to have a knowledgeable divorce attorney at your side to assist you in making these important, life-changing decisions.
Here at Coastal Virginia, we have decades of experience working one-on-one with our clients to help them navigate the hassles of divorce and strive to make the entire process as equitable for all involved, as possible.