Many states, including Georgia, follow equitable distribution laws to address property division in a divorce. In equitable distribution states, courts will divide property fairly, but not necessarily equally, based on several factors including:
- Length of the marriage.
- Each spouse’s financial and non-financial contributions to the marriage.
- Each spouse’s income and financial needs.
Marital property is subject to division upon divorce
When two people enter a marriage, they often bring property they own individually into the marriage. This type of property is referred to separate property. Some examples of separate property may include inheritances, gifts given to just one spouse, and property only used by one spouse. Generally, separate property is not subject to division during a divorce.
During the marriage, the couple may acquire or purchase property together. This type of property is referred to marital property. Some examples of marital property may include family homes, family vehicles, and business assets. Only marital property is subject to property division in a Georgia divorce.
What happens to commingled property?
When separate property is mixed with marital property, the result is commingled property. For example, a home that was purchased by one spouse prior to marriage can become commingled property if marital funds were used to renovate the home or make mortgage payments. Commingled assets are considered marital property and will be subject to property division in most cases.
What happens to debt?
Married couples often owe debt in the form of mortgages, loans, and credit card balances. In the same way that marital property is subject to equitable distribution, so is marital debt. The court will evaluate each spouse’s financial situation and determine how the debt should be divided.