Often, one of the largest assets married couples own are retirement accounts. As a result, these retirement accounts can become the focus of divorce proceedings if the parties seek court-ordered equitable distribution.
In July, the Virginia Court of Appeals answered this question, ruling that a husband’s IRA retirement account was to be considered marital property for purposes of the divorce’s equitable distribution. In that case, Bowen v. Williams, the wife filed for a divorce decree from her husband. The trial court awarded the decree and equitable distribution, including division of the husband’s retirement account. The husband appealed the trial court’s judgment, arguing that all the funds deposited into the IRA retirement account could be traced to savings he had prior to the marriage and, therefore, the retirement account should be considered indivisible separate property.
Virginia Code § 20-107.3(A) clearly states “[a]ll property acquired by either spouse during the marriage is presumed to be marital property in the absence of satisfactory evidence that it is separate property.” Thus, the husband’s IRA retirement account is presumed to be marital property because the account was created in 2017 after the parties had married in 2014.
The Court of Appeals ruled that the husband failed to satisfy his burden of proof because “there were no account statements prior to [the marriage] introduced into evidence.” Rather, the only evidence to be weighed by the trial court was the husband’s testimony at trial, and the trial court “has the discretion to accept or reject any of the witness’ testimony.” Because the Court of Appeals could not say that the trial court was “plainly wrong,” the Court of Appeals affirmed the lower court’s decision.
This case illustrates the importance of presumptions and burdens of proof in equitable distribution matters. Courts will likely presume that all property acquired during a marriage, including retirement accounts, are to be classified as marital property unless the opposing party can prove otherwise.
Led by Joanna Foard and Erin Masin, General Counsel, P.C.’s family/divorce can help you. Divorce and related matters can be complex and because of their importance, it is beneficial to consult with an attorney experienced in family law matters. Our family law attorneys are well-versed in divorce matters and can help you navigate the process and protect your rights. Email us at intake@gcpc.com, call us at 703-556-0411, or use this Contact Us form to see how we can help you.