Property Settlement Agreements Summary

Property Settlement Agreements

Divorce issues may either be agreed upon by the parties in a property settlement agreement, or by having a court decide the issues. Where the parties are willing to put aside their personal feelings and focus on the issues to be decided, often the parties will reach a settlement agreement. When this is possible, the parties often save significant legal and court costs. In Virginia, property settlement agreements are explicitly recognized by statute and case law. Just as unmarried persons may enter into a pre-nuptial agreement, Virginia allows married parties to enter into a similar agreement. These agreements may include, but are not limited to, the following:

  • grounds of divorce
  • disclosures of property
  • division of property
  • monetary awards
  • child custody
  • child visitation
  • spousal support or waiver of spousal support
  • retirement division
  • military retirement division or waiver
  • federal employees retirement division or waiver
  • Thrift Savings Plan division or waiver
  • civilian retirement division or waiver
  • income tax issues, including filing status, and income tax exemptions
  • how bankruptcy of one or both parties may affect your property settlement agreement

Divorces require that many tax issues be considered. We work with your CPA or other tax professional, if any. If you do not have any, we can advise you of the income tax consequences of the property settlement agreement. You should find out the tax consequences of your agreement before it is signed. 

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