Equitable distribution is the legal term meaning “division of assets and debts.” Courts must apply the factors set forth in the Code of Virginia when determining how to divide assets and debts. Equitable distribution can be complex where the parties own multiple parcels of real property and own businesses. We often use experts to determine the value of major assets.
Many times, parties can agree to the division of assets and debts. In those cases, they can enter into a Property Settlement Agreements, also known as a PSA. A PSA is the general name for the negotiated written agreement that resolves issues in a divorce case. Most of the time, a Property Settlement Agreement resolves all outstanding issues and is made part of the Final Decree of Divorce. Property Settlement Agreements are a bit misleading because they can resolve much more than just property issues. They can also resolve child custody and visitation, child support, spousal support, tax issues, and equitable distribution.
A majority of the time, divorce cases are resolved through a Property Settlement Agreement. Parties should consult an attorney prior to endorsing any written agreement. If a party endorses a Property Settlement Agreement that does not address all issues or waives certain rights, he or she may be forever prevented from certain relief from a Court. Proceed with caution using internet forms.
If you need assistance distributing property and debt in a divorce case, call us at 804.717.1969.