Married couples in Virginia often share ownership of most property. They may both have their names on the household bank account and the title for their home. They may share joint responsibility for the same lines of credit.
Each spouse may also have certain resources held solely in their own names. 401(k)s and similar retirement accounts tied to employment are usually in the name of one spouse. If each spouse has a well-funded retirement savings account, do they simply treat those funds as separate property when preparing for property division in a Virginia divorce?
Marital contributions are often divisible
Equitable distribution rules require that spouses disclose and address all marital property to find a fair solution for dividing their assets and debts. Unless spouses have signed a valid legal agreement designating pre-existing retirement accounts as separate property, they usually have an obligation to disclose those resources during the divorce process.
Any retirement savings set aside during the marriage are likely marital property because they are the product of marital income. Spouses may need to assess account records carefully to determine how much of each account is marital and how much is separate.
They can then negotiate arrangements for fairly addressing those accounts during the property division process. Judges also have the authority to order the division of retirement savings accounts as part of a divorce. While dividing the accounts may be the simplest solution, there are also alternate arrangements that address the value of individual retirement savings accounts without splitting them.
Determining what property is marital is the first step toward a fair property division outcome in a Virginia divorce. Even assets held in the name of one spouse are often subject to division during divorce proceedings.