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Is this considered marital property to be divided?

Virginia Beach, VA |

My husband and I separated (not a 'legal separation') while we were separated he purchased a $200,00.00 RV in his name only. He then formed a LLC company in Montana to avoid paying taxes on the RV which he purchased in North Carolina.
When we divorce will I have a claim to 1/2 of the worth of the RV.....and will I be penalized in any way for what he did to avoid paying taxes?
Thank you

Attorney Answers 2

Posted

Va. Code 20-107.3(A)(2) says, in part, "Marital property is . . . (iii) all other property acquired by each party during the marriage which is not separate property as defined above." Separation is still during the marriage as the marriage continues until the divorce decree is entered.

Va. Code 20-107.3(A)(2) continues by stating "All property . . . acquired by either spouse during the marriage, and before the last separation of the parties, if at such time or thereafter at least one of the parties intends that the separation be permanent, is presumed to be marital property in the absence of satisfactory evidence that it is separate property." The code does not provide for the corollary proposition that all property acquired after the last separation is presumed separate. However, that would be the prudent position to prepare.

Whether the RV could be considered marital property would depend, in part, on the source of funds to purchase the RV. If your husband used a marital savings account for a full cash purchase, then there may be a marital interest to divide. If the purchase was 100% financed with no marital cash contribution, then there is likely no marital interest.

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3 comments

Asker

Posted

Thank you for your answer. I don't know if this makes a difference....we were separated and he purchased the RV. We then reunited and traveled full time in the RV for 18 months. During that time I always paid for our camp site rental. He purchased the RV with the profit he made when we separated and sold our house.

Michael Christopher Miller

Michael Christopher Miller

Posted

The separation does not concern me too much. It was not permanent because you reconciled and traveled for 18 months. There is no written agreement. The added information that he bought the RV with proceeds from the sale of your house is important. As I mentioned initially, it looks like that may be marital money just as if he used a marital savings account. However, that would in part turn on the marital vs. separate interests of the house. The bigger issue to address is if he bought the RV with his portion of the proceeds, and you already received your portion, what would the reason be for you to come back for a portion of the RV. That starts to look like you are double-dipping on the proceeds from sale of the house.

Asker

Posted

Thank you for your answer. I would have thought that anything he purchased while we were separated could be considered marital property as long as he didn't use money received from an inheritance, award or something like that.

Posted

No, you do not "have" to claim an interest in the RV. And if he did all the funny business after separation without your knowledge you should not have tax problems.
You should talk to a lawyer, however, about the facts of the situation. You still may "want" to claim an interest if he used marital funds to purchase it.

This answer is for general information purposes, is not legal advice and does not create an attorney-client relationship. If you wish to schedule a consultation regarding your particular case, please call (757)533-5400.

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5 comments

Asker

Posted

Thank you very much for your response :)

Asker

Posted

I'm curious about the "marital funds".....this just gets deeper....and honestly this is the truth. He received a social security disability check in the amount of $18,000.00 for back pay. Within the same week he received a duplicate check. He put the $36,000.00 into his account and used part of that (plus proceeds from the sale of our house) as a $30,000.00 down payment on his RV.

Mary G. Commander

Mary G. Commander

Posted

You really do need to sit down with a lawyer to review this.

Asker

Posted

Thank you, I appreciate your time :)

Mary G. Commander

Mary G. Commander

Posted

Good luck!

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