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Division of Brokerage Accounts in a Divorce in Georgia

Publish Date: 05/12/2025

Equitable Division of Marital Accounts

All marital property in a divorce in Georgia is subject to an equitable division. The meaning of property in a divorce case is broad, and brokerage accounts (investment accounts) are considered as property as well. Accordingly, any marital portion of brokerage accounts will be equitably divided between spouses in the divorce proceeding.

What Is a Brokerage Account?

A brokerage account is a type of financial account, just like a bank account, that holds assets. However, a brokerage account is different than a bank account in that a brokerage account is used for investment purposes. Many financial entities offer brokerage accounts to consumers, and consumers may easily open and use these accounts to invest in stocks, bonds, mutual funds, exchange-traded funds, and so on. Simply put, a consumer can open a brokerage account through a broker, put funds in the brokerage account, and start investing.

Generally, just as the Federal Deposit Insurance Corporation protects deposits in bank accounts, Securities Investor Protection Corporation protects funds held in brokerage accounts.

A brokerage account may be titled in a spouse's individual name or jointly with the other spouse.

How Is a Brokerage Account Divided in a Divorce in Georgia?

In a divorce in Georgia, the first step in determining the division of a brokerage account is to figure out the value of the marital portion of the brokerage account, which may be the entire account depending on the circumstances. Then, you would split (not necessarily 50/50) the marital portion of the brokerage account. The title of a brokerage account is not the sole factor the court considers in determining the value of the marital portion of the brokerage account.

When valuing and dividing a brokerage account, a spouse should consider the tax implications because taxes could affect the strategy regarding how to divide the brokerage account.

Any earnings from brokerage accounts, including interest, dividends, and gains, will be taxed. The amount of taxes owed on such earnings may depend on the income tax bracket of the respective spouses and the length of the period of time (short-term versus long-term) the underlying assets were held. Further, depending on the circumstances, some spouses will be subject to the Net Investment Income Tax. Also, such taxes may be imposed on the spouses both at the federal (the IRS) and state (Georgia Department of Revenue) levels. In other words, even if the brokerage account is split evenly, the net value of the 50% of the brokerage account to a spouse after taxes may be different than that to the other spouse.

Simply put, an analysis of the value of a brokerage account to a particular spouse may be complicated. Such analysis may further be complicated due to the fact that the relative value of a brokerage account to another asset (for example, real estate or pension) may be different. Therefore, it may be worthwhile to consult with both a Georgia Divorce Lawyer (Atlanta Divorce Lawyer) and tax specialist regarding division of brokerage accounts in your divorce case.

Written by: Daesik Shin

Categories:

Asset Division
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