(757)491-0240 Equitable Distribution The question of what to do about the property acquired, and the debts accumulated, during the marriage is often settled by agreement.  If the parties are unable to agree, the court has the power to order the division of the parties' property and debts.   The code section is 20-107.3 and the process is commonly called "equitable distribution" because the court is required to distribute the marital assets and liabilities "equitably."  Although the statute lists many factors that the court is to consider, including whether one party was more responsible for the failure of the marriage than the other, there is a strong bias in favor of an equal distribution of the assets.  There is an equally strong bias in favor of unequally distributing the liabilities.  Frequently the husband is the one to take away the majority of the debts accumulated during the marriage if he has the higher income.  In the majority of divorces, the parties are able to agree on the division of the marital assets and liabilities and they put the terms to which they have agreed in a separation agreement.  The cases where a failure to agree is most common are those in which there is a high marital net worth and uncertainty about the value of the assets.   Pension and profit sharing rights that were accumulated during the marriage are marital property and subject to being divided.  In the Hampton Roads area, many divorces involve a military pension.  The formula for dividing a military pension is the number of months of marriage while the spouse is in the military, divided by the total number of months of military service, times 50%, times the retired pay.  A common misconception is that the spouse only acquires an interest in the pension after ten years of marriage.  This is a myth.  No particular number of years is required for the spouse to be entitled to share in the pension. The best way to approach your negotiation over equitable distribution is to make a three-column spreadsheet.  The first column will be for the marital assets and liabilities.  The second and third will be for what each party is to receive when the assets and liabilities are divided.  Follow the accounting convention of listing all of the assets at the top and then put in a line for the totals.  List the liabilities next and put in a separate total line for them.  Lastly, put in a line labeled net worth and make it the total value of the assets less the total value for the liabilities, both for the marital partnership and for each of the spouses.  List all of the marital assets and their values in the first column.  Then for each item that appears in the list, put its value in the column for the spouse who will be getting it in the divorce.  Do the same with the debts.  In the end your spreadsheet will show one net worth for the marital partnership, one for the wife after the divorce, and one for the husband after the divorce.     Lifetime pensions are valued by estimating both the likely retired pay and the life expectancy of the spouse who has earned the pension and then determining, using a mathematical formula, what the cash value of that income is, as of the date of separation.  Ordinary household furnishings can be valued at cost, but a more realistic valuation is what they would bring at an estate sale.  Especially valuable furniture may need to be appraised before you can fairly allocate it to one spouse or the other. Cash and publicly-traded securities are easy.  Businesses, particularly personal service businesses like a law or medical practice, can be difficult to value.  Cash businesses present lots of room for dishonest efforts to value them too cheaply.       Contact the Law Offices of Diane Fener | Virginia Divorce, Child Custody | Child Support | Virginia Divorce Attorneys | Virginia Divorce Forms | Adoption Law Virginia | Virginia Juvenile Court | Virginia Divorce Law & Court Links | Basic Steps - Divorce Process | Child's Best Interests | Child In Need Services & Supervision | Facts of Life - Litigation | Grounds for Divorce - Virginia Law | Interstate Child Custody Cases | When a Lawyer is Essential | Mediation | Move Aways | Juvenile Justice Resource Book | Simple Uncontested Divorce | Cases Alleging Serious Juvenile Crime | VA. Beach Juvenile Justice Needs Assessment | Spousal Support - Virginia | Site Map