While divorces and annulments both put an end to a marriage, they differ in their effects and purpose. If a marriage is annulled, it becomes void and the marriage is wiped from the records of the parties involved. While Virginia does allow annulments, most married couples do not qualify and are thus generally forced to pursue divorce.

In order to file for annulment in place of divorce, couples must prove that accepted grounds have been met. For instance, if one party refuses or cannot consummate the marriage, if the parties realize they are related and that their relationship constitutes incest or if one or both spouses were unable to give their consent to the marriage due to mental illness or a similar set of circumstances.

One of the key advantages of an annulment is that it allows each party to return to their original financial state. In an annulment, courts will try to ensure that each party leaves the marriage with the assets they contributed, as well as debt. Courts usually attempt to divide any joint assets or debts in an equitable manner. Couples that are currently undergoing annulment can take additional steps to make sure their finances are handled fairly. For instance, one spouse could pay the entirety of a couple's joint debt, and then file a lawsuit to retrieve half from the other spouse. This makes sure that all bills are paid, protecting the first spouse's credit score.

In general, annulment can avoid some of the financial disputes that frequently develop in divorce cases. Because the marriage is deemed invalid, there is no need for the court to determine which of the couple's assets count as marital property.

Source: CreditCards.com, "Annulment vs. divorce: How it impacts finances," Tamara E. Holmes, Dec. 30, 2011