Virginia Divorce Law: What is Separate Property

A lot of people contact me asking questions about whether or not certain types of property will be divided during a divorce. The most common examples may include inheritance, businesses and real estate. Some people come into a marriage with a lot of property while others do not have a lot of assets when they get married.

Regardless, when two people get a divorce property will get divided into three separate types of property: Marital, Separate and Hybrid. So what is separate property, and what are some common examples?

What is Separate Property in a Divorce?

Virginia law actually has a legal definition of separate property. Virginia law defines separate property as:

1. All property, real and personal, acquired by either party before the marriage;

2. All property acquired during the marriage by bequest, devise, descent, survivorship, or gift from a source other than the other party;

3. All property acquired during the marriage in exchange for or from the procees of sale of separate property so long as that property was maintained as separate.

4. Income derived from separate property so long as not attributable to labor from during the marriage;

5. Increase in value of separate property unless contributed to during the marriage

These are the five most common types of separate property. This is a lot of legal jargon to say that separate property is essentially those items you bring into a marriage that you keep separate and do not comingle or contribute marital funds or labor to.

What Are Examples of Separate Property?

A good example of separate property is a business that you start prior to marriage. That business starts out as separate property, and would normally not be divided during the marriage. The income from that business would also not be divided, nor would increase in value, unless you make substantial marital contributions to that business.

For example, if your spouse invests in your business after you are married, you add your spouse to the business as a joint owner, or you take out additional financing during the marriage then that may turn the business into joint property that has to be divided.

Another example of separate property is a house that you owned prior to marriage. So long as you do not add your spouse to the house and it is owned outright, you normally would not have to reimburse your spouse anything during the divorce unless there were major renovations or marital investments in the property. If the house is mortgaged and you pay it down during the marriage, then substantial portions of those mortgage payments would get divided since you are investing marital funds into the property.

Why You Need a Divorce Lawyer.

If you are going through a divorce and have substantial assets, then it is important to have a divorce lawyer to help you catalog all of your property and figure out how much of it will be divided and how much the other spouse is entitled to. The divorce lawyer can also make sure you do not waive any interest you may have in the other spouse’s assets as a result of marital contributions to the property. Make sure to hire a lawyer if you are considering a divorce.

Virginia Divorce Law: What is Marital Property

There are three types of property that have to be addressed in a Virginia divorce case: separate property, marital property, and hybrid property. This blog post is dedicated to the second type of property, marital property.

Marital property, generally, is property acquired during the marriage and the entire value gets divided in some form or fashion.

However, many people I talk to don’t understand how broad this category of property is. So what is marital property, and what gets divided in a divorce case?

What is Marital Property in Virginia?

Virginia law has a legal definition for marital property. The legal definition of marital property is:

(i) all property titled in the names of both parties, whether as joint tenants, tenants by the entirety or otherwise,

(ii) that part of any property classified as marital pursuant to subdivision 3, or

(iii) all other property acquired by each party during the marriage which is not separate property as defined above.

In basic terms, most property acquired during the marriage, regardless of whose name it is in, is considered to be “marital property.”

Some common examples of marital property that often surprise people include:

1. If your spouse has a Kohl’s credit card you were entirely unaware of, then you could be responsible for portions of this as “marital debt” even if your name is not on the card.

2. If you purchase a vehicle during the marriage but your spouse’s name is not on the vehicle, then your spouse could be entitled to money if you decide to keep it.

3. If you purchase a house during the marriage but do not add your spouse’s name, then your spouse could still be entitled to reimbursement.

4. If you have a separate bank account without your spouse as a joint account holder, then the money in that account added during the marriage could be divided.

5. If you are self-employed and started a business during the marriage, then your spouse may be entitled to compensation.

There are a lot of exceptions to these categories, which is one of the major reasons to talk to a lawyer.

Why It Matters Whether Property is Marital

Virginia divorce judges have to divide property that is considered marital in some form or fashion. If property is considered marital, then you have to start financial planning to determine what your ideal outcome in a divorce case will be. You may decide that selling marital property as part of the divorce proceedings makes more financial sense than offering your spouse a buy out to keep the property.

All of the marital property combined is what we call the “marital estate,” and understanding the size and make up of the marital estate is important to having a game plan for divorce proceedings.

Why You Need a Divorce Lawyer.

A good divorce lawyer is able to help you look at all the property you have and determine which items are marital property and which are not. They can also help you create a financial game plan for what happens during and after the divorce and to prioritize those property items that matter most to you. Also, a divorce lawyer can connect you with financial planners if you need additional assistance planning for life after divorce.

Make sure you call a divorce lawyer if you are looking at a divorce.