Virginia Family Law Blog

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.

For much of the 20th century, courts in Virginia and other states almost universally sided with mothers when making custody decisions. But during the past 30 years or so, shared parenting, or joint custody has gained more acceptance. Child custody itself can be broken down as legal custody and physical custody of the child or children involved.

While there are exceptions, courts generally approach shared parenting today with an assumption that joint legal custody will be awarded. However, situations involving physical custody, defined as where a child sleeps at night, generally favor the mother because of logistical issues, such as school obligations and the physical location of both parents' homes. Even so, there has been a clearly noticeable shift in custody trends since the 1980s, as documented by a 2014 study.

Divorced or separated parents in Virginia may claim their children as dependents when filing taxes. However, they should be aware that if more than one taxpayer claims a kid as a dependent, the Internal Revenue Service will have to take a second look at the returns.

Including dependents on a return can have a significant impact on taxes. Taxpayers with qualified dependents can file as the head of their household, which is deemed a favorable tax filing. The taxpayers can also claim tax credits such as the Earned Income Tax Credit, the Child and Dependent Care Tax Credit and the Child Tax Credit.

Virginia business owners who are getting married might wonder how they can ensure that the company does not become a point of contention if there is a divorce. With a prenuptial agreement, the couple can establish that the business is separate property, and it will not be part of the process of property division in a divorce.

If both spouses are co-owners, they may also want to make a plan. This could be continuing to own the business despite the divorce, or it could mean one person agreeing to sell the company to the other in the event of divorce. A prenup might also name a certain percentage of the business that a spouse will get if there is a divorce. If a couple is already married, these provisions could be stated in a postnuptial agreement.