Splitting assets in a divorce can be complicated. There’s a matter of dividing properties fairly, which can get difficult when either party believes they hold a greater stake in certain assets. In some cases, couples may want to keep their properties joint.
But is this even possible–can you divorce without splitting assets? The short answer is ‘yes.’ This is done either through a prenuptial or postnuptial agreement, a mutual agreement, or specific state laws (such as a status-only divorce arrangement).
To navigate property division during a divorce and to know how to best protect your hard-earned assets if you split with a partner, get help from a Virginia Beach divorce lawyer at Coastal Virginia Law.
Assets Involved in Divorce
Generally, all property and debts acquired during a marriage, except gifts and certain financial settlements, can be split upon divorce. These include:
- Homes, vacation properties, land
- Businesses and investments
- Financial accounts (bank accounts, credit cards, mortgages, loans)
- Stocks and bonds
- Retirement accounts (401ks, IRAs, pensions)
- Vehicles (including boats, RV’s, motorcycles, etc.)
- Animals (livestock, horses, exotic animals, etc.) and pets
- Personal property (jewelry, artwork, furniture, family heirlooms, etc.).
Separate Versus Marital Property
When determining a split of assets during a divorce, it’s important to distinguish between separate versus marital property.
Separate property refers to assets brought by either person into the marriage. It includes property acquired before marriage, as well as gifts or inheritances given only to one spouse during the marriage. Separate property doesn’t have to be divided in a divorce. The assets continue to belong to the person who solely owns it, given that it wasn’t mixed with marital property or that their partner didn’t assist with its upkeep or improvement.
Marital property, on the other hand, involves assets acquired by either person while married. This is what’s divided during a divorce. The division could be decided upon in different ways, with many of them not necessarily ending in a fifty-fifty split.
Splitting Assets in Court
State laws apply to decide the appropriate outcome for splitting assets during a divorce. Generally, states have two different systems for this division: community property and equitable distribution. Knowing which one applies in your state can give you an idea of how property division will go about.
Community Property
In community property states, marital property and debts are split evenly. Community property states include:
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
Equitable Distribution
In equitable distribution states, which are all remaining states (including Virginia), marital assets and debts are divided fairly–and not always evenly. Under equitable distribution rules, courts consider factors such as the length of marriage and each person’s contribution to the partnership to decide how to divide property.
Divorce Without Splitting Assets
It’s typically best to split assets during a divorce. This helps cut all ties between a couple that may have a soured partnership and reduces the risk of one person filing lawsuits related to undivided property later on. That said, there are certain scenarios wherein not splitting assets makes sense, such as in situations that involve a family business.
Here are some ways in which couples can divorce without splitting assets:
Prenuptial Agreement
The best way for couples to maintain separate property and thus not have to deal with division during divorce is through a prenuptial agreement. This contract outlines how assets should be handled in the event of a divorce, stipulating which properties can’t be split.
Mutual Agreement
Some couples may come to a mutual agreement to not split certain assets. This should be written in a legal document and approved by a court to ensure that it may be enforced during a divorce.
Jurisdiction-Specific Laws
Apart from the general rules governing community property and equitable distribution states, each place has varying guidelines on asset division. Some jurisdictions may either be more strict or more lax about splitting properties. It’s best to consult a divorce attorney to know one’s options based on where the divorce is being filed.
Learn More About Divorce and Asset Division
Divorce can get tricky, but with the help of expert divorce attorneys from The Coastal Virginia Law Firm, the process can be made much easier. Wondering how long an uncontested divorce takes? Get in touch with us today!