Stafford Divorce Lawyers Tracing Separate and Marital Property

Skilled Lawyers Identifying Separate and Marital Property for Divorces in Stafford, Virginia

During your divorce, you will have to identify the property belonging to you (separate property) and the property shared by you and your spouse (marital property). Sometimes, the distinction between the two is straightforward, but in other cases, a thorough investigation may be required. If you need help tracing an asset's origin, reach out to a Stafford, VA divorce lawyer for help.

At Meyer & Bowden, PLLC, we have decades of experience helping clients navigate complex property division, including high net worth divorces. We have a reputation for helping our clients avoid costly litigation, using our legal knowledges and skills to resolve cases in negotiation.

What Virginia Law Says About Marital and Separate Property

In Virginia, marital property generally includes everything acquired by either spouse during the marriage, regardless of which name is on the title or who earned the income.

Examples of marital property include the family home purchased after the wedding, retirement benefits earned during the marriage, income from employment, and vehicles bought with marital funds. Separate property consists of assets each spouse brought into the marriage or received by gift or inheritance during the marriage, such as an inheritance left solely to one spouse or a home owned prior to marriage.

Under the principle of equitable distribution, the court will first classify each asset as marital or separate, then decide on a fair allocation of marital property. Factors the court considers include the duration of the marriage, each spouse's contributions, and the economic circumstances of each party.

What Are Commingled Assets?

Commingling occurs when separate property is mixed with marital property in such a way that it loses its distinct identity. Once funds or assets are commingled, tracing their origin becomes more difficult, and the court may treat the entire fund as marital property.

To provide an example, if one spouse deposits an inheritance into a joint checking account and uses that account to pay household bills, the inheritance may become marital funds. Likewise, using separate savings to make mortgage payments on the marital home or to fund home improvements can transform those separate funds into marital investments in the property.

Other common examples include transferring securities from a premarital brokerage account into a joint account or paying off a separate-asset loan with marital income. To preserve separate property status, it is important to maintain clear records, avoid depositing separate funds into joint accounts, and keep inheritance or gift proceeds in distinct accounts or titled separately.

Protecting Your Assets During a Virginia Divorce

Spouses who wish to safeguard their separate property or specify how assets will be divided can consider prenuptial and postnuptial agreements. A prenuptial agreement, entered into before marriage, can designate certain assets as separate, outline how debts will be allocated, and establish financial obligations during the marriage. A postnuptial agreement serves the same function but is executed after the marriage has begun.

Both types of agreements must be entered into voluntarily, with full disclosure of assets, and absent any coercion or fraud. Beyond prenuptial or postnuptial agreements, spouses can also protect assets by maintaining separate accounts for gifts and inheritances, documenting the source of funds used for significant expenses or improvements, and avoiding commingling through joint ownership of major assets.

If commingling has already occurred, financial experts or forensic accountants may help trace the original funds and demonstrate which portion remains separate.

Contact a Stafford, VA Asset Division Lawyer Today

When the distinction between marital and separate property is unclear, navigating asset division can become complex and contentious. At Meyer & Bowden, PLLC, we are committed to protecting your property rights under Virginia law. Call 703-722-8692 or contact our Stafford, VA asset division attorneys to schedule a consultation and discuss how we can help you achieve a fair division.