Money plays a major role in people's lives. It often dictates where they live, what they eat, where they travel and how happy they are. If two married individuals can't agree on how to spend their money, this can cause a huge rift in the relationship and even lead to divorce. When a person gets divorced in Virginia and has to tackle complicated matters such as asset distribution and property division, it can be essential to understand the big picture when it comes to his or her financial situation.
First, it may be wise to get organized. This includes putting all of one's financial documents in different files that are easy to track. It especially helps to organize papers that show how much money exists in one's individual accounts and joint bank accounts both during the union and after the dissolution of the marriage. This makes it clear what money is to be shared with the spouse.
Other significant financial documents that are beneficial to organize include information about other types of assets, including retirement savings and investments. It is also important to gather documents that spell out all debt and loan obligations, including credit card debt. Being proactive in this way can reduce stress levels when this information has to be shared with a soon-to-be former spouse.
Just as money may be at the center of disputes during a marriage, it can also be at the center of conflict during a divorce proceeding in Virginia. In order to ensure the greatest chance of achieving a favorable outcome, it helps to be knowledgeable about one's rights when it comes to property division and the distribution of assets. The two individuals may be able to negotiate how to divide assets in order to avoid further court intrusion in our state. Otherwise, a family law judge will likely help equitably distribute the assets between the two parties.
Source: The Huffington Post, "Divorce Confidential: The Importance of Being Financially Savvy During Divorce", Caroline Choi, April 18, 2014