During the course of marriage, couples acquire assets and debts that are referred to as marital property. States vary on how property is divided upon divorce. Some statues use a “community property” standard, meaning that any assets and debts acquired during the marriage are community property and are divided 50/50. Georgia follows an equitable distribution standard, which means that marital property division must be equitable, not necessarily equal.

Marital Property v. Separate Property

Upon separation or divorce, all property, assets and debts in which either person has an interest must be classified. Such items will be designated as “marital” property or “separate” property of one spouse. Marital property generally includes assets and debts accumulated during the marriage or that are jointly titled in the names of both spouses. Separate property generally includes property that was owned by a spouse prior to the marriage or was received by one spouse during the marriage by means of gift or inheritance. The rules of classifying property can be complex and reasonable attorneys can differ on how such assets may be classified. In some cases, a forensic accountant or financial expert may be involved to assist in the analysis.

Equitable Division of Assets

Once assets and debts are classified, the property division between the parties will be on an equitable basis. Property division typically starts at a true 50/50 division and will ultimately end there; however, how that property is divided may vary from case to case. For example, one spouse may receive all of the home equity and the other spouse receives a greater share of a financial asset to compensate her for her share of the home equity. Property division is important and can have significant financial ramifications if not done properly.

If the parties are unable to agree on the property division, the court will have to make a decision. This may include presentation of equitable factors including marital misconduct, the ages of the parties, and the parties’ respective options for future asset acquisition and growth. Depending on your stage of life, you may be more concerned about retirement assets than real property, or you may be more interested in investment assets than retirement funds. Because everyone’s goals and needs in property division are different, it is important to consult a family law attorney to discuss your best options for your future.

Contact an Experienced Family Law Team

Property division (equitable distribution) in a separation or divorce can be a complicated, complex process. Allow the Leonard Firm to handle the details and assist making the property division portion of your divorce as easy as possible for you. The Leonard Firm will take time in accurately identify, classify, and value your assets and debts to ensure that you retain your property and receive a equitable division of the marital estate. If you need additional resources, such as an accountant or forensic expert, to prepare your arguments for property division, we can skillfully guide you through that process. Whatever your concerns are, we can help.

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