Equitable Distribution in Divorce
Divorce can be challenging. One of the most difficult parts of the process is deciding who gets what. As a married couple, your finances will inevitably become entangled. In Georgia, property division in a divorce is subject to equitable distribution. Each spouse is entitled to their fair share of the assets. At Meriwether & Tharp, LLC, we have extensive experience with equitable distribution cases. Our Georgia equitable distribution attorneys want to ensure that you understand how the law actually works.
Know the Law: The Principles of Equitable Distribution in Georgia
Georgia is one of the 41 equitable distribution states in the U.S. What does that mean for your divorce? Assets and debts are divided based on what is fair, not necessarily equal. A 50/50 split of the marital property is possible, but by no means guaranteed, in our state. Under Georgia law (O.C.G.A. § 19-5-13), courts have discretion to award property in a manner that reflects each spouse's contributions and needs. "Equitable" takes into account financial and non-financial factors, such as child care, homemaking, and support for the other spouse's career.
Big Question: Marital Property vs. Separate Property
A divorcing couple's marital property is subject to equitable distribution. Separate property will remain the sole property of one spouse. To determine an equitable result, the court must first classify all property as either marital or separate. Separate property can include things like assets acquired before marriage, inheritances, and individual gifts. However, premarital property that has been "commingled" can sometimes become marital property in Georgia.
The Value of the Marital Estate Matters
The marital estate is made up of all of a couple's marital property. The value of the estate matters for navigating equitable distribution. Once assets are classified as separate or marital, they must be valued.
Georgia courts generally rely on fair market value. It is that figure which reflects what an asset would sell for in the open market. Of course, that is not always an easy question. Real property, business interests, and retirement accounts may require a professional appraisal. There can be disagreements over the value of marital property. If one spouse controls most of the financial information, the other spouse's Georgia divorce attorney may need to compel certain information.
An Overview of Factors Georgia Courts Consider for Equitable Distribution
After identifying and valuing marital assets and debts, Georgia courts divide property based on what is equitable under state law. A key point to know is that there is no fixed formula. Instead, judges in Georgia have broad discretion to weigh multiple factors and craft a division that reflects the financial and personal contributions of each spouse. Here is an overview of notable factors:
Length of the Marriage and Lifestyle Established: The longer the marriage, the more intertwined the couple's finances become. Courts aim to maintain stability, especially when one spouse has been financially dependent. The marital standard of living can influence how marital property is divided.
Financial and Non-Financial Contributions: Georgia law recognizes both monetary and domestic contributions. Income, investments, and business efforts matter. At the same time, so do child care, homemaking, and career sacrifices made for the family's benefit.
Separate Estate and Future Earning Capacity: Judges in Georgia also evaluate each spouse's financial independence after divorce. A spouse with a significant separate estate or higher income potential may receive a smaller share of the marital assets.
Waste, Concealment, or Dissipation of Assets: Financial misconduct matters. If a spouse intentionally hides money, destroys records, or spends marital funds on personal indulgences (such as affairs or gambling), the court may credit those losses back to the other spouse.
Health, Age, and Financial Circumstances of Each Spouse: While certainly not always decisive, health and age can affect earning potential and future needs. A spouse with a disability or limited income opportunities may receive a greater portion of the marital estate to ensure his or her long-term security.
Fairness: Equity is ultimately about fairness. Georgia courts are tasked with determining a distribution that works in the real world. The focus is always on a balanced outcome which reflects both contribution and need.
Debts Are Part of the Equation
There are many divorcing couples in Georgia who have a considerable amount of debt. Any debt will be evaluated as part of the equitable distribution process. Indeed, marital debt is treated the same as marital property. Mortgages, credit cards, and loans accumulated during the marriage are typically divided according to each party's ability to pay and the benefit received. Courts can offset assets against debts so one spouse does not shoulder an unfair share. However, creditors are not bound by the divorce decree. That means debt must be properly handled during the divorce, so the equitable distribution of assets and liabilities is truly fair.
We Are Leaders in Property Division in Georgia
Georgia is an equitable distribution state. Property and debts are divided in a "fair" manner. At Meriwether & Tharp, LLC, we strive to ensure our clients are able to get a proper distribution of the marital assets in a divorce. Our firm puts an emphasis on collaborative problem-solving in family law cases, but we will never let your rights or interests take a backseat to those of your spouse. Your initial consultation with a Georgia equitable distribution lawyer is completely confidential and without obligations.
Contact a Georgia Divorce Attorney Today
At Meriwether & Tharp, LLC, our Georgia divorce lawyers are experienced with property division and debt division. If you have any specific questions or concerns about equitable distribution in Georgia, we are more than ready to help. Please do not hesitate to contact us today for a confidential and no-obligation consultation. We handle property division cases across Georgia.