Bucci & Dix

New Law Much Needed Fix for Virginia Equitable Distribution

HB-1569, a bill which was passed unanimously by both the House of Delegates and the Senate Courts of Justice Committee, was a much needed fix to a legislative anomaly in the area of equitable distribution.  Although Va. Code § 20-107.3 made clear that property acquired during the marriage is presumed to be marital property unless proven otherwise, the statute did not provide the same presumption for marital debt.   Although judges and lawyers have customarily treated both property and debt the same way, this was not provided-for in the statute.  Consequently, in the case of Gilliam v. McGrady, the Supreme Court held that debt incurred during a marriage was presumed in the first instance to be separate.   A legislative fix was needed.  Debt has become a, if not "the," primary focus especially given the economic downturn; for many couples, particularly those with houses underwater (remaining mortgage greatly exceeds the value of the home), equitable distribution has become more about the proper apportionment of debt than assets.   You can learn more about this new law in our library.