How are debts divided in a divorce?

Georgia is an equitable distribution state, which means marital assets and debts are divided based on what is fair. Some factors to consider include whether each spouse contributed to these debts, the income of both spouses and the reasons for the debt obligations.

Are inheritances considered marital property?

Typically, no. Inheritance is not subject to division in Georgia even if a spouse received the inheritance during their marriage. In a divorce, the spouse who is entitled to the inheritance keeps it after a divorce. However, commingling the inheritance with marital funds may cause it to become part of the marital estate.

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Representing Clients In Marital Property Division

Outside of child custody and support, dividing marital assets is one of the biggest sources of conflict and stress in divorce proceedings. Deciding who gets the house, who is responsible for debts and how retirement accounts and other assets will be divided often turns into an emotionally charged negotiation. Even in amicable divorces, it is recommended that you have an attorney who can protect your financial interests.

At the Law Office of Erin Muldoon Haug, I can take a pragmatic look at your financial situation. I have over 20 years of experience fighting to make sure my clients get their fair share of assets and property in the divorce process.

Reviewing Your Assets During Divorce

We begin the process by doing a thorough review of all of the assets and debts acquired before and during your marriage. The laws that determine whether an asset is considered marital property can be confusing. Not all assets you and your spouse obtained during the marriage are always marital property, and not everything you had before the marriage is personal property. I sit down with you after doing a detailed analysis of your assets and property, and explain what you can expect from the court. This is the point where you decide if there is anything you want to fight for.

Standard Items Divided As Part Of Marital Property

Inheritances and gifts acquired during a marriage are considered personal property. Almost all other assets earned or obtained by either spouse during the marriage are considered marital property belonging to both spouses. Typical assets and property that are divided include:

House, vacation properties and land
Motor vehicles
Retirement accounts and pension plans
Stocks and bonds
Businesses

Debt accumulated during the marriage is also divided equitably during the divorce. This includes all types of financial obligations, including mortgages, back taxes, car loans, credit cards and any type of bill with a balance owed.

What Is The Difference Between Separate Property And Marital Property In Georgia?

Understanding the difference between separate property and marital property can directly impact your financial future when it comes to property division. Working with an experienced attorney can help you identify which assets may be protected and which may be subject to division.

In Georgia, separate property generally refers to assets owned by one spouse individually and that may not be divided during divorce proceedings. Common examples of separate property include:

Assets owned by one spouse before the marriage
Inheritances received by one spouse alone
Gifts specifically given to one spouse
Certain personal injury settlements
Property protected by a prenuptial or postnuptial agreement
Assets intentionally kept separate from marital finances during the marriage

These categories may seem straightforward, but property classification disputes are often more complicated than they appear. Courts closely examine how assets were used during the marriage and whether separate property became intertwined with marital finances.

For example, a home purchased before marriage may initially qualify as separate property. However, if marital income was later used to pay the mortgage, renovate the property or maintain the home, part of the property’s value may become marital property. On the other hand, inherited money deposited into a joint bank account may lose its separate classification over time.

Marital property generally includes assets and debts acquired during the marriage, regardless of whose name is on the account or title. This can include income, retirement accounts, real estate, vehicles, investments and business interests accumulated while married.

Because property division cases often involve detailed financial records and competing claims, it is important to work with an attorney who can help trace assets, evaluate commingled property, and protect your financial interests throughout the divorce process.

Frequently Asked Questions About Marital Property Division In Georgia

The division of marital property can lead to a lot of confusion – and disputes. Our attorneys can answer any questions you may have about the asset division process in your divorce.

Are there exceptions to what is considered marital property?

Yes. Marital property includes any assets acquired during a marriage. However, some assets are considered exempt from the marital estate. Assets acquired before marriage, gifts to one party alone and inheritance are generally considered separate property, not subject to division. Prenuptial and postnuptial agreements can also limit what assets are part of the marital estate. These documents could designate certain property to a spouse even if it were acquired during a marriage.

Can separate property become marital property during the marriage?

Yes. In some cases, separate property becomes part of the marital estate, which means it is subject to equitable distribution laws. For example, separate property – like an inheritance – may be mixed with marital property through commingling. This could happen if separate funds from a savings account are placed into a joint account. Furthermore, making large contributions to an asset, such as making payments on a house owned prior to marriage out of marital funds, could make separate property part of the marital estate.

How is marital property division determined in a Georgia divorce?

Georgia follows the rule of equitable distribution. This means marital property is divided fairly, but not necessarily equally, between spouses. Courts consider several factors when determining what is fair in each case. These factors may include:

Each spouse’s income and earning ability
Contributions made during the marriage
The length of the marriage
Debts and financial obligations
Future financial needs
The circumstances leading to the divorce
Whether one spouse wasted or concealed assets

Because no two divorces are exactly alike, property division outcomes can vary from case to case. I can help you understand how Georgia courts may evaluate your situation and advocate for a fair distribution of assets and debts.

Can property be divided without going to court?

Yes. Many divorcing couples resolve property division issues outside of court through negotiation, mediation or settlement agreements. Reaching an agreement privately can provide more flexibility and allow both spouses to maintain greater control over the outcome.

Resolving property issues outside of litigation may also offer several advantages, including:

Reduced conflict between spouses
Lower legal expenses
Faster resolution of the divorce
Greater privacy regarding financial matters
Customized agreements tailored to the family’s needs

Even when spouses agree on property division terms, it is still important to have an attorney review the agreement before it becomes final. Legal guidance can help ensure the agreement is enforceable, financially fair and aligned with your long-term interests.

Contact The Law Office of Erin Muldoon Haug To Protect Your Assets

For representation in dividing marital assets in your divorce, call my Savannah office at 912-421-7084 or fill out my online contact form.