Understanding Equitable Division in a Georgia Divorce
Dividing property can be one of the hardest parts of a divorce. Georgia uses a system called equitable division to determine how marital property should be divided between spouses. “Equitable” means fair under the circumstances, not necessarily equal.
This means each spouse does not automatically receive 50% of every asset. Instead, the property must first be identified and classified before a fair division can be determined. Understanding these basic rules can help you make informed choices about your finances during a Georgia divorce.
What Is Equitable Division in Georgia?
Equitable division is the process Georgia courts use to divide marital property during divorce. The goal is to reach a fair result based on the circumstances of the marriage.
Unlike states that use community property rules, Georgia does not require marital assets to be divided equally. A court can consider the financial circumstances of both spouses and other relevant factors when deciding what is fair.
Before property can be divided, it is generally necessary to determine what belongs to the marital estate and what qualifies as one spouse’s separate property.
What Is Considered Marital Property?
Marital property generally includes assets acquired during the marriage through the efforts of either spouse. Property can be marital even if only one spouse’s name appears on the title or account.
Examples may include:
- The marital home
- Bank and investment accounts
- Retirement benefits earned during the marriage
- Vehicles
- Business interests
- Valuable personal property
Debts incurred during the marriage may also need to be addressed as part of the overall financial division.
How and when an asset was acquired can be more important than whose name appears on it. Identifying all marital assets is an important step because the court generally divides only property that belongs to the marital estate.
What Is Separate Property?
Separate property generally belongs to one spouse and is not subject to equitable division. Property acquired before the marriage may qualify as separate property. Certain gifts and inheritances received individually during the marriage may also qualify.
However, separate and marital property can sometimes become mixed. For example, one spouse might place inherited money into a joint account or use separate funds to purchase a home during the marriage.
Financial records can help trace where money came from and determine whether an asset is entirely separate, entirely marital, or contains both separate and marital interests.
What Factors Can Affect Equitable Division?
There is no simple formula that determines what percentage of marital property each spouse receives. Instead, the circumstances of the marriage can affect the final division.
Relevant considerations may include:
- Each spouse’s financial circumstances
- Income and earning ability
- The length of the marriage
- Each spouse’s separate property
- Contributions to the marriage
- Conduct involving marital assets
- Valid marital agreements
- Waste, hidden assets, or improper transfers of property
These factors can lead to different outcomes from one divorce to another.
The goal of equitable division is fairness based on the specific facts rather than an automatic 50/50 split.
Does Equitable Division Mean Everything Is Split 50/50?
No. Equitable division does not require each spouse to receive exactly half of the marital estate. An equal division may be appropriate in some cases, while the circumstances may support a different result in others.
The court also need not physically divide every asset. For example, one spouse could keep the marital home while the other receives a greater share of retirement or investment assets.
Considering the overall value of the property distribution is important when deciding whether a proposed settlement is fair.
How Are Complex Assets Divided?
Some assets are more difficult to divide because their value is not immediately clear. These assets may require an appraisal or other financial analysis.
Examples include:
- Businesses
- Real estate
- Retirement accounts
- Stock options
- Investment portfolios
- Valuable collections
A business can present additional questions when one spouse owned it before marriage, but its value increased during the marriage.
Determining whether an increase in value is marital and calculating each spouse’s interest can require detailed financial records. Proper valuation helps both spouses understand what they are giving up or receiving in a settlement.
What Happens to Retirement Accounts in a Georgia Divorce?
Retirement benefits earned during a marriage may be subject to equitable division, even when the account is held in only one spouse’s name.
The portion accumulated before marriage may be treated differently from contributions and growth associated with the marriage. Determining the marital portion can therefore require reviewing account statements and employment records.
Certain retirement plans also require special court orders before benefits can be transferred to a former spouse. Understanding the type and value of each retirement asset is important before agreeing to a property settlement.
Can Spouses Divide Property Without Going to Trial?
Yes. Spouses can negotiate how they want to divide marital property rather than having a judge make the decision at trial.
A negotiated settlement may give spouses more control over the outcome. They may agree that one person keeps the home while the other receives different property of comparable value.
Before agreeing, both spouses should understand what property exists, whether it is marital or separate, and what it is worth. Property settlement terms can have lasting financial consequences after the divorce is final.
Contact the Atlanta Divorce Lawyers at Crystal Wright Law, LLC for Help Today
Equitable division can have a lasting effect on your financial future. Correctly identifying, classifying, and valuing property can help you understand whether a proposed settlement fairly addresses the marital estate.
Crystal Wright Law, LLC helps clients protect their financial interests during divorce, from identifying marital and separate property to addressing complex assets and disputed valuations. Contact our Atlanta divorce lawyers today at (404) 594-2143 to schedule a free consultation and learn how we can help you pursue a fair property division.
