Divorce 101: Getting Divorced in the Virgin Islands Part 5: Equitable Distribution
Divorce is an emotionally challenging process, and one of the most critical aspects that couples must address is the equitable distribution of marital assets. In this blog post, we will dive into equitable distribution and highlight how the Virgin Islands Court strives to ensure fairness and justice in dividing marital assets.
The USVI is NOT a “community property” territory!
A common misconception about divorce is that you will get exactly half of the marital assets. Nine States are described as “community property states”. Community property states, such as California, Texas, and Arizona, follow the principle that most property acquired during a marriage belongs equally to both spouses. This includes income, assets, and debts acquired by either spouse during the marriage, regardless of who earned or acquired them. In community property states, the marital assets are generally divided equally (50/50) between the spouses during a divorce unless there are extenuating circumstances.
The USVI does not have community property laws but rather, we follow laws of “equitable distribution”. Our courts seek to divide marital assets fairly and justly, rather than equally.
What is equitable distribution?
Equitable distribution is a legal principle that aims to divide marital assets fairly between spouses, taking into account various factors such as the duration of the marriage, each spouse's financial contributions, and their future financial needs. It is important to note that "equitable" does not necessarily mean a 50/50 split, but rather a division that is just and reasonable given the unique circumstances of each case. Equitable distribution considers several factors, such as the length of the marriage, each spouse's financial contributions, future financial needs, and non-monetary contributions to the marriage. The court aims to achieve a division that is deemed fair given the specific circumstances of the case.
Equitable distribution in the Virgin Islands is governed by 16 V.I.C.§ 109 (2019) (a)(7) which states:
(a) Whenever a marriage is declared void or dissolved the court may, without regard to any determination that the breakdown of the marriage was the fault of one party or the other, further decree:
(7) for the award to the parties of all marital property, in accordance with principles of equitable distribution. For purposes of this paragraph, “marital property” means all real and personal property acquired by either spouse subsequent to the marriage, except:
(A) Property acquired by gift, bequest, devise, or descent;
(B) Property acquired in exchange for property acquired prior to the marriage, or in exchange for property acquired by gift, bequest, devise, or descent;
(C) Property acquired by a spouse after a decree of legal separation;
(D) Any judgment or property obtained by judgment awarded to a spouse from the other spouse;
(E) Property excluded by valid, written agreement of the parties; and
(F) Income from property acquired by a method listed in subparagraphs (A) through (E), if the income is not attributable to the personal effort of a spouse.
The Role of the Virgin Islands Law
In the Virgin Islands, the courts have the authority to divide property and other assets in a manner they deem fair, considering several factors. These factors may include the length of the marriage, the financial contributions of each spouse, the economic circumstances of each party, the existence of any prenuptial agreements, and the needs of any children involved.
Financial Contributions and Non-Monetary Contributions
When determining the division of assets, our courts consider both financial contributions and non-monetary contributions made by each spouse during the marriage. Financial contributions include income earned, property acquired, and investments made. Non-monetary contributions, on the other hand, encompass homemaking, child-rearing, and support provided to the spouse's career or education. The court acknowledges that these contributions are equally valuable and should be taken into account when dividing assets.
Protecting the Interests of Both Parties
Our courts aim to protect the interests of both spouses during the asset distribution process. To achieve this, they carefully evaluate the future financial needs of each party, especially when one spouse is financially dependent on the other. The courts may award a greater share of assets or provide spousal support to ensure that both parties can maintain a reasonably comparable standard of living after the divorce.
Seek Professional Guidance
With over three decades of experience, Attorney Evert knows the ins and outs of equitable distribution. If you need expert advice, give us a call!
Navigating the intricacies of divorce and equitable distribution can be challenging. We strongly encourage you to seek the counsel of experienced family law attorneys.
A seasoned attorney, such as Attorney Evert, can provide valuable guidance and represent their client's interests, ensuring that their rights are protected during the asset distribution process.
Divorce is a difficult chapter in anyone's life, and the equitable distribution plays a vital role in ensuring fairness and justice. Our courts recognize the importance of addressing the financial aspects of divorce thoughtfully. By considering various factors, including financial and non-monetary contributions, they strive to achieve a fair and reasonable distribution of assets. Seeking professional guidance from knowledgeable family law attorneys can be immensely helpful in navigating the complexities of divorce and ensuring one's rights are protected throughout the process.
