How are Assets Divided in Divorce

Estimated Reading Time: 3 Minutes 30 seconds
Dividing and distributing assets in a Virginia divorce is a four-step process:

Identify and determine ownership of the asset;
Determine the value of the asset;
Classify the asset (does it belong to the marriage or to an individual spouse); and
Reach mutual agreement on how the asset will be divided using the law as a guideline, being mindful of tax implications, and assessing fairness considering a variety of factors, both financial and non-financial.

How Does Spousal Support Work in Virginia?

Estimated Reading Time: 8 min read

Virginia Code

Virginia statutory law speaks generally of the criteria that a judge must consider when deciding an alimony case. However, the listed criteria give almost no guidance to the courts when making a determination as to “how much” spousal support is to be paid and “for how long” spousal support should last.

Tax Effects of Alimony (Spousal Support) | New Tax Rules as of 1/1/2019 under the TCJA

Estimated Reading Time: 8 Minutes 50 seconds
Starting Jan 1, 2019, the long-standing tax rules associated with alimony have significantly changed, and alimony is no longer tax deductible by the payer; nor is it taxable to the receiver. The new law, however, does not apply retroactively.

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Child Support Income Determinations – Virginia Divorce

For purposes of calculating Child Support in a Virginia divorce, gross income is what is used (not net, not AGI, nor anything else). The term “gross income” is very broadly interpreted. It includes, but is not limited to:

Salaries
Wages
Commissions
Royalties
Bonuses
Dividends
Severance Pay
Pensions
Interest
Trust Income
Annuities
Capital Gains
Social Security Benefits (can be complicated)
Workers Compensation Benefits
Unemployment Insurance Benefits
Disability Insurance Benefits (can be complicated)
Veterans Benefits
Spousal Support received
Rental Income
Gifts
Prizes
Awards

Gross income does NOT include:

Benefits from most Public Assistance programs
SSI benefits
Child Support received
Income received by payor for secondary employment where that income is being obtained specifically to discharge a child support arrearage established by a court or administrative order and the payor is actually paying that arrearage.