Divorce requires you and your spouse to divide your marital assets- a process often easier said than done. You may fear that certain assets that you brought into the marriage, such as sentimental property or vehicles, being subject to asset distribution and leaving your hands.
Taking steps to protect assets during divorce in Virginia might help you avoid losing possession of more property than you legally need to. An experienced divorce attorney can help you implement asset protection strategies while abiding by Virginia law.
What Assets Are Vulnerable to Distribution in a Divorce?
Before you worry about protecting family assets, understand which assets are subject to distribution. Virginia law distinguishes marital property from separate property.
Marital property includes assets acquired during the marriage, minus any gifts or inheritances either partner received. Separate property includes gifts, inheritances, and property either party owned before the marriage.
Only marital property and assets are subject to property division, but these two types of assets can easily become commingled during a marriage and difficult to distinguish. This is why it is important to understand how marital assets are defined in Virginia law.
Tips for Protecting Assets Before and During a Divorce
These tips can help you lawfully protect your separate property and take measures to avoid parting with certain assets in a divorce.
Create a Prenuptial or Postnuptial Agreement for Clarity on Asset Division
Prenuptial agreements, created before marriage, and postnuptial agreements, created during the marriage, can both provide valuable clarity about how assets would be divided in a divorce. If you have not yet decided on a divorce, creating this type of agreement can allow you to enumerate the property you will keep separate. Be sure to work with an attorney to create a legally binding agreement that holds up in court.
Keep Separate Assets Separate To Avoid Confusion
One of the challenges in the marital property division process is distinguishing which assets are marital and which you entered the marriage with. You may know that you had $10,000 in your bank account when your marriage started. But if you combined assets with your spouse at the time, distinguishing that $10,000 from the money you spent out of your shared account can be difficult to trace.
If you want to protect your assets during divorce in Virginia, keep them separate during the marriage. This might involve maintaining a separate bank account that is only in your name and not adding your spouse as a beneficiary to investments.
Be Aware of Property Titling and Account Ownership
You and your spouse might have separate cars that you consider your own, but whose names are on the titles? Another strategy for protecting assets is being aware of titling and account ownership, as the court will look to these details to determine which property is marital vs. separate.
If both your name and your spouse’s name are on your car title, the court may very well consider it “marital property,” even if one of you bought it before the marriage or it was a gift.
Avoid Concealing or Transferring Assets in a Divorce
While it may be tempting to hide assets that you want to protect in a divorce, doing so goes against Virginia law. Full financial disclosure is legally required in Virginia divorces, and concealing assets may only hurt your case for equitable distribution.
Seek Legal Guidance for Protecting Assets During Divorce
Hiring an experienced divorce attorney can provide guidance on how to protect assets during a Virginia divorce. Contact Holcomb Law, P.C., today at 757-LAWYERS to request a legal consultation.
