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Virginia Property Division Laws – A Brief Overview
Virginia has a clear set of guidelines regarding the distribution of the couple's property as part of the divorce proceedings. One of the primary methods the court uses to achieve property distribution in Virginia is through a statutory rule called 'equitable' based on the language in the law (Virginia Code # 20-107.3).
This distribution method may not result in a clean 50-50 split of property. The court, in making the division, is not required only to divide things equally but must make sure the outcome is just considering the whole case and each party's needs under the law.
Separate Property vs Marital Property
The court begins the asset identification process by looking at marriage property first. That is to say anything real estate or property that was purchased during the marriage. Whether that property was bought in the name of one or both of the spouses, still remains as marital property.
On the other hand, the definition of a separate property includes things or assets that you already owned before the marriage or those that your family or friends have gifted individually to you. Hence, such a property cannot be part of the marital property.
Housing is considered as marital property even though you have bought it jointly. So, it means that both of you are the owners, and hence, you are both responsible for the payment of the debt and the ownership of the home.
How Virginia Courts Handle Real Estate
Virginia family courts cannot directly transfer real estate ownership from one spouse to another without consent. Instead, the judge orders a property sale if the spouses cannot agree. The court then directs how the net cash proceeds get divided between both parties.
Many couples prefer to manage the sale on their own terms. Choosing to sell house quickly in a divorce gives you total control over the process instead of letting a judge decide.
Dividing Assets and Handling Marital Debt
Selling the home resolves big debts and splits net profits. It provides a clean break for everyone involved.
Clearing Shared Financial Liabilities
In most cases, houses are bought with a joint mortgage loan, shared home equity loan or tax lien. The closing attorney takes responsibility for discharging all common debts during the hand over time. After that, the proceeds from the house sale are split evenly between the owner and the ex-spouse. It is one of the steps you can take to sell your house quickly for the payment of the marriage debt and, at the same time, to preserve the credibility of your credit history.
Understanding Capital Gains Taxes
The Internal Revenue Service gives special tax rules for home sales. Under IRS Section 121, single taxpayers can exclude up to $250,000 of home profit from taxes. Married couples filing jointly can exclude up to $500,000 in capital gains.
If you sell during the divorce, you may still qualify for the higher tax exemption limit. Consult a tax expert to check your personal tax situation.
Why a Quick Home Sale Can Help During Divorce
Divorce is a major life change not only on an emotional level but also financially. However, there is no reason that getting rid of the house would make the situation even worse.
It is quite common after a divorce to face a situation when you have not even got time to get rid of some repairs at a property and you have to move out, especially if you and the ex are having trouble with property. By choosing to sell a house as quickly as possible, you can minimize legal troubles that a prolonged property dispute can bring you, avoid putting in extra money in expensive repairs which may never be required, and eliminate the need for open houses.
The selling of the property can even be used as a means to get rid of a shared debt in a way that neither party will be held for it or as a liquidation of joint assets.
In fact, selling the house fast during a divorce can bring you more control over your financial matters. You can end the proceedings fast, which can give you the time and the space to think and plan the rest of your life after the divorce.