Virginia Family Law Blog

Many Virginia residents know someone, either a relative or friend, who has been completely blind-sided by a divorce. He or she was living a regular, happy life when the other spouse came home one day and declared the marriage was over and there was no possible means of reconciliation. It may be hard to imagine there were no signs of problems, but sometimes one spouse has moved on while the other clings to the comfort and stability of the past. However, when a split seems all but inevitable, it can prove beneficial to begin preparation sooner rather than later.

The laws are clear that neither party in a divorce can hide assets or be anything less than completely honest in dealing with a pending divorce, but the reality is often different. Legal experts stress the importance of having full financial records as an imperative before initiating any divorce proceedings. This includes bank records, property deeds, retirement accounts, and perhaps most importantly, an accurate accounting of all debts and liabilities. By doing so, the individual is acquiring all the documentation needed but is also getting a good feel for the issues that will impact how the property division may play out.

When couples in Virginia divorce, finances are often a top concern. This is particularly true if either spouse owns a business or the couple owns a business together. This is because businesses are often a significant asset and, in many cases, a primary source of income.

In cases where the couple owns the business together, some important decisions will have to be made. These include whether the business will be sold outright, whether the couple will continue operating as before or whether one spouse will buy out the other's share. If only one of the spouses owns a business, other questions arise, including determining that spouse's income for child support and spousal maintenance payments.

The Social Security Administration reports that 96% of workers throughout Virginia and the rest of the United States have Social Security coverage. People who are eligible to receive Social Security benefits when they retire should know how the process works.

For those who have been married, it may be possible to receive spousal benefits from Social Security, even if they have low income or have never worked. In fact, one can receive up to 50% of their spouse's entire benefit if that ex is qualified for Social Security. It is also important to note that the eligibility to receive the benefits does not always go away if a divorce occurs. Individuals will find it helpful to be aware of their rights since the benefits to which they may be entitled, even after a divorce, can affect a retirement plan.

Regardless of how close or far away retirement might be for a Virginia couple, divorce could make a significant dent in their retirement savings. Further complicating matters may be the fact that it can be difficult to set aside emotions during divorce negotiations. However, this will be necessary to ensure future financial security.

Spouses may have IRAs, pension or 401(k) accounts. Whether or not the account was established prior to the marriage, both spouses may be entitled to a portion of the funds. When looking at the value of an IRA, it's important to keep in mind that withdrawals before the age of 59 1/2 are penalized. To divide a pension or 401(k) as part of a divorce settlement, it is necessary to have a document called a qualified domestic relations order. This is not needed for an IRA.