Blogs from September, 2024

What You Should Know About Automatic Sealing

In 2021, Virginia passed a law introducing significant reforms to the state's criminal record-sealing policies. Aspects of this law were revised in 2023. This new law provides a valuable opportunity for individuals to move forward without the burden of a criminal history following them.

The automatic sealing provisions of this law will take effect on October 1, 2025.

Expungement vs. Sealing

In Virginia, expungement and sealing generally mean the same thing. Sealing records aims to limit public access to an individual's criminal history. While in some states, expungement completely erases a record, in Virginia, expungement and sealing both serve to limit access to the record in question.

While the record still exists, it will not appear in most background checks. Additionally, these records will be kept in a secure location and are only accessible to a few people and only for a few specific reasons, such as

Automatic Sealing of Records

Starting October 1, 2025, individuals charged with a misdemeanor in Virginia but ultimately not convicted may have their records automatically sealed. A non-conviction can occur under several circumstances, such as an acquittal, dismissed charges, or if the prosecution chooses to drop the case (nolle prosequi).

A note on dismissals: a deferral-dismissal does not qualify for automatic sealing, as this involves a court finding sufficient evidence for a potential conviction before the case is dismissed.

Eligibility for Automatic Sealing for Convictions

Individuals with convictions may also be eligible for the automatic sealing of their records under the new law. Specifically, they may be eligible if at least seven years have passed since the dismissal or conviction and the individual has maintained a clean legal record during this time. This means they must not have been convicted of any laws in Virginia or any other jurisdiction, including the District of Columbia or federal territories, that would necessitate reporting to the Central Criminal Records Exchange.

Requesting Sealing of Records in Virginia

In Virginia, individuals have the right to request the sealing of their criminal records, although the process differs depending on the circumstances of the case. If a record is eligible for automatic sealing due to the new law, individuals do not need to take any action, as the process will begin automatically on October 1, 2025.

However, if an individual believes their record should be sealed sooner or if it falls outside the automatic sealing provisions, they may file a petition with the court.

To initiate this process, individuals should gather relevant documentation, including case numbers, court dates, and any supporting evidence demonstrating that they meet the eligibility criteria. The petition must be submitted to the appropriate circuit court in Virginia, along with any required fees. Once filed, the court will review the request, and a hearing may be scheduled where the individual can present their case to seal the record.

Consider Hiring Legal Representation

It's important to note that the success of such requests can depend on various factors, including the nature of the charges and the individual's legal history. Consulting with a legal professional may provide additional guidance and potentially improve the likelihood of a favorable outcome.

If you have questions about the new criminal record-sealing law set to take effect in 2025, reach out to The Law Offices of Daniel J. Miller. We can help you determine how this law may impact your situation.

Individuals and couples with a high net worth face unique challenges when divorcing. Substantial asset holdings are often more complex than average and may even feature international real estate or offshore accounts. Unlike standard divorce proceedings, high-asset divorces often take longer to resolve due to the complexity of assets involved and the potential for significant financial implications.

High-asset individuals frequently face unique hurdles, such as:

• Complex property division
• Privacy concerns
• Potential for financial disputes
• Tax implications
• Valuation of unique or difficult-to-assess assets

Below, we discuss three significant aspects of divorce that high-net-worth couples should know about before they initiate a divorce.

Understanding Separate vs. Marital Property

In Virginia, property division during a divorce follows the equitable distribution model, which focuses on fair, though not necessarily equal, asset division. Property division settlements can be negotiated directly between parties with the assistance of their lawyers, through third-party mediation, or decided by a judge during litigation.

Before a couple's property is divided, it must first be categorized. Assets are classed as either marital or separate. Marital property includes assets acquired during the marriage, while separate property refers to assets owned individually before the marriage or acquired via inheritance or gift specifically to one spouse.

What About Hybrid Property?

A particularly challenging area is the concept of hybrid or commingled property—assets that have characteristics of both marital and separate property. For instance, if a spouse owned a business before marriage but its value increased during the marriage due to joint efforts, the business might be considered hybrid property, and all or part of it may be subject to division during a divorce. This complexity requires careful evaluation to determine how such assets should be divided.

Tips for preparing for property division when you have significant wealth include:

• Document all your assets thoroughly and carefully
• Keep detailed records, especially if assets are commingled
• Seek the advice of financial advisors and forensic accountants if necessary
• Be proactive about understanding the valuation process for various assets, especially those that may be unique or difficult to appraise
• Obtain appraisals from qualified professionals
• Consult with a tax advisor to get help in understanding the long-term financial impact of property division decisions

Protecting Your Privacy & Confidentiality

High-asset divorces often involve sensitive financial information that can become public through court filings and proceedings. This exposure can be detrimental, potentially affecting personal and professional reputations. Therefore, safeguarding privacy is a top priority.

Legal strategies to ensure confidentiality include opting for mediation or arbitration instead of litigation. These alternative dispute resolution methods offer a more private setting and can prevent sensitive details from becoming public.

Prepare for a Longer-Than-Average Process

High-asset divorces often involve intricate financial issues that require expert analysis. Financial professionals such as forensic accountants and business valuators frequently play critical roles in these cases. Consequently, the divorce process for many high-asset individuals can take longer than usual.

While the average divorce in Virginia is three to six months, a high-asset divorce can take up to a year (or, in some cases, longer).

Issues such as tax obligations, hidden assets, or offshore accounts can significantly complicate divorce proceedings. Addressing these challenges requires strategic planning and professional advice.

If you are facing a high-asset divorce, reach out to our law firm to schedule a consultation with one of our experienced divorce attorneys. We are here to guide you through the divorce process and help you understand how Virginia's divorce laws may impact your case.

What You Need to Know in Virginia

In today's rapidly evolving financial landscape, cryptocurrency has become a significant asset category. Its growing prevalence poses unique challenges in various legal contexts, including divorce proceedings. As more couples encounter the complexities of dividing digital assets like cryptocurrency, understanding how these assets should be handled becomes paramount.

Keep reading to learn more about how to approach the division of cryptocurrency during a divorce.

Understanding Cryptocurrency as a Marital Asset

Cryptocurrency (or "crypto") is a digital or virtual currency that relies on cryptography for security. Part of the appeal of cryptocurrency is that it is incredibly secure and difficult to counterfeit. Many people see crypto as the future.

However, unlike traditional assets, it operates on a decentralized platform, often providing users with a degree of anonymity. This decentralized nature, combined with the challenges of valuation, sets cryptocurrency apart from conventional financial assets when going through a divorce.

Equitable Distribution in VA

In Virginia, the law treats cryptocurrency like any other marital property subject to division upon divorce. Under Virginia's equitable distribution law, the court aims to divide marital assets fairly but not necessarily equally. Part of this process is identifying which property is marital (jointly owned) and which is separate (individually owned and not subject to division).

Marital property includes assets acquired during the marriage, while separate property refers to those owned before marriage or acquired by gift or inheritance. Hybrid assets, commingled between marital and separate holdings, may also be involved.

Factors the court may consider when dividing property in a divorce include:

• The monetary and non-monetary contributions of each spouse to the marital property.
• The duration of the marriage, which can impact the valuation of assets and the division process.
• The age and health of both spouses, as these factors can affect future income and needs.
• The standard of living established during the marriage, which may influence asset division to maintain a similar lifestyle post-divorce.
• The assets and liabilities of each spouse, including debts, which must be accounted for in the division.
• Any specific agreements between the spouses prior to divorce, such as prenuptial agreements, that outline property distribution.

Dividing Cryptocurrency in a Virginia Divorce

Virginia courts approach the division of cryptocurrency by considering several factors within the framework of equitable distribution. The courts may decide to split the assets between parties, assign a value to the cryptocurrency and compensate with other assets, or use a combination of these approaches.

Accurate documentation of cryptocurrency transactions and holdings is vital. This transparency helps present a clear financial picture to the court, facilitating a fair division process.

The Challenge of Valuing Cryptocurrency

Valuing cryptocurrency presents its own set of challenges due to its volatile nature and fluctuating market conditions. An asset’s value can change dramatically within short timeframes, complicating the division process. Thus, an expert valuation is often necessary to ensure an accurate assessment of the holdings at the time of divorce proceedings.

Hidden Cryptocurrency & Legal Remedies

When a spouse attempts to hide cryptocurrency assets, it complicates divorce proceedings. Employing strategies such as thorough financial investigations can mitigate this risk. Failure to disclose such assets can lead to serious consequences, as hiding assets constitutes fraud.

Identifying cryptocurrency holdings can be daunting. If you suspect your spouse owns cryptocurrency, look for common indicators, such as unexplained wealth or transactions. Legal discovery tools like subpoenas or hiring forensic accountants may also be helpful in uncovering hidden digital assets.

Legal remedies for divorce fraud can vary; if you suspect your spouse is hiding cryptocurrency assets, you're encouraged to consult with an experienced attorney to understand the specific options available.

The Importance of Legal Representation

Protecting your financial interests in divorce proceedings is critical, particularly when significant digital assets are involved. The complexities surrounding cryptocurrency can make achieving a swift divorce settlement challenging. A family law attorney well-versed in digital assets (like ours at The Law Offices of Daniel J. Miller) can be an invaluable asset during this process.

We invite you to schedule a consultation with us today to explore how we can assist you in this challenging process.