The song lyrics were written by the band Van Halen, as they were asked to write a song for the 1979 movie "Over the Edge" starring Matt Dillon. The movie (and the lyrics, although more obliquely) are about bored, rebellious youth with nothing better to do than get into trouble. If you see the movie, these lyrics will make more sense. It's a great movie if you grew up in the 70s/80s you'll definitely remember some of these characters from your own life. Fun fact, after writing the song, Van Halen decided not to let the movie use it.
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I'm not sure about the virginity thing.. it can't be about lost childhood and virginity because then we're talking about a child character losing his virginity. I don't think it's about divorce either. I mean it could be, but it seems more apt to be a political statement. In that case, "daddy" and "the lawyers" would represent our president and the lawyers our government, which is made mostly of lawyers. The video for this song showed a picture of Ronald Reagen when "... for this tired old man that we elected king" played, so I really think it's a political statement about the world losing the innocence that it once had. "The lawyers clean up all details, cause daddy had to lie." The Reagen/Bush/Bush administrations kept going forward with dishonest and misleading policies, and their aides or political friends would hide their mistakes. When I hear the above line now, I think that "daddy" refers to George W. Bush who has lied to our country about reasons of going to war, but the conservative media and his political cronies (the lawyers) "clean it up" by misleading us into believing it's about moral values that they themselves don't even believe.
However that said, the early line, "with mommy and daddy standing by", that COULD be an actual mom & dad, representing our parents and teachers and friends who sheltered us from the hardships and lies of real life, but now the end of innocence is here and they can't protect us anymore ("since daddy had to fly").
But that's just my two cents.