Divorce raises many financial questions, and property division is a significant concern. Will you get your fair share? Will it be a 50/50 split? It is essential to know that Georgia is an equitable distribution state, not a community property state like Texas or California.
Equitable distribution means distributing marital assets “equitably,” for your specific situation, but not necessarily “equally.” Fairly dividing marital property is not subject to a simple, uniform rule.
What counts as marital property?
Only marital assets are subject to equitable distribution. Marital property is generally any asset or debt you and your spouse acquired during the marriage, no matter whose name is on the title, including bank accounts, retirement funds and real estate purchased from the wedding date until the date of separation.
Separate property is not subject to division. Equitable distribution rules generally exclude assets you owned before the marriage or received during the marriage as a gift or inheritance from a third party. However, complications can arise when these assets are “commingled” with marital funds.
How judges determine a fair division
Georgia courts do not use a simple formula to determine what is fair. Instead, judges weigh several unique factors. They consider the complete picture of your life together and your financial prospects moving forward.
Key factors that a court may consider include:
- The length of the marriage and the financial standing of each spouse
- The contributions of each spouse to the marriage, both financial and nonfinancial (like homemaking or supporting a spouse’s career)
- The future needs and earning capacity of each party after the divorce
- The separate assets of each spouse
No fixed percentage or magic calculator exists. The court’s goal is to ensure the final distribution is “just” for both parties based on these and other unique facts.
Taking control of the process
You do not have to leave the decision to a judge. You and your spouse can determine your own asset division plan through negotiation or mediation. A “settlement agreement” allows you to define what “fair” means for your family, which helps you avoid the uncertainty of a court’s ruling. Most importantly, you retain control over the outcome, thereby protecting your family’s privacy.
However, a judge must still review and approve the agreement to ensure it complies with the law and is not the product of fraud, duress, or mistake, with particular scrutiny if the agreement involves child custody or support.
The value of experienced counsel
Reaching an acceptable settlement for a complex marital estate requires careful attention to detail. Equitable distribution is complex and fact-specific. Ensuring that you value, classify and distribute these assets fairly under Georgia law underscores the importance of having experienced legal representation. A skilled divorce attorney can protect your financial interests and future economic well-being.