Divorce can be an emotionally trying time, especially when you have to make major decisions about dividing your assets and property. If you’re considering divorce, you probably have plenty of questions about how your assets will be divided and the divorce laws regarding property division in the state.
How Are Assets Divided in a Divorce?
Georgia is an “equitable distribution” state when it comes to divorce asset division. This means marital property is divided in a fair and just manner, but not necessarily equally.
The court will distribute assets acquired during the marriage based on what it deems equitable. This involves evaluating:
- Income and financial needs of each spouse
- Length of the marriage
- Age and health of each spouse
- Child custody arrangements
- Contributions each spouse made to acquiring assets
- Market value of real estate and other property
- Tax consequences
Marital property includes assets acquired by either spouse during the marriage. This can include real estate, investments, retirement accounts, businesses, vehicles, jewelry, furniture and more.
Separate property belongs solely to one spouse. This may include:
- Assets owned before the marriage
- Inheritances and gifts received during the marriage
- Settlements from personal injury lawsuits
Separate property is generally not subject to division unless it became entangled with marital property. For instance, if a spouse used inherited money to pay down the mortgage on the marital home.
Debt accumulated during marriage is also categorized as marital and divided equitably, taking income and individual debts into account.
Overall, the court aims to make property division fair while considering each spouse’s circumstances. There is flexibility in how assets can be divided in divorce.
Is Status-Only Divorce an Option?
Some couples consider a status-only divorce, which dissolves the marriage without dividing assets or determining spousal support. The rationale is divorcing quickly so each spouse can keep their individual property.
Status-only divorce carries risks:
- No spousal maintenance: With no spousal support provisions, the lower-earning spouse has no recourse. This disproportionately impacts women who sacrificed careers for family.
- Shared debt remains: Marital debt will likely still need to be divided equitably per state law. Failing to do so can create legal issues.
- No asset division: All property stays with the original owner, regardless of contributions made during the marriage. This can create inequity.
- Complications with retirement and inheritance: Status-only divorce can impact rights related to pensions, Social Security benefits, and inheritance.
While status-only divorce is an option, the downsides often outweigh the potential benefits for most couples. Consulting an experienced divorce lawyer is highly recommended before choosing this path.
How Can Prenups and Postnups Help?
Prenuptial and postnuptial agreements can be invaluable for those intent on keeping assets separate in divorce.
These legally binding contracts define how property and debt will be divided if you divorce. They allow you to determine in advance:
- Which assets will remain separate property
- How marital property will be divided
- Spousal support provisions
- How retirement plans and stock options will be handled
By creating an agreement about asset division when entering a marriage or during an existing marriage, you avoid leaving it to chance in divorce.
Can You Divorce Without Splitting Assets Through Mediation?
Mediation is an alternative approach to reaching a divorce settlement without involving the courts. You and your spouse work with a neutral mediator to negotiate terms for dividing assets, spousal maintenance, child-related matters, and more.
The key benefits of divorce mediation include:
- Less adversarial: Maintaining control over the outcome often creates less conflict.
- More flexibility: Mediation allows creativity in crafting solutions, rather than being bound by state laws alone. You can get as creative as you want with dividing property.
- Cost and time savings: Avoiding contested divorce court hearings significantly reduces expenses and delays.
- Privacy: Mediation is confidential, while courtroom proceedings are public records.
Mediation gives couples leeway to divide property outside the usual 50/50 split if agreed by both spouses. The final mediated divorce settlement can become legally binding and submitted to the court.
Can Legal Separation Allow for Avoiding Asset Division?
Legal separation is different than divorce in that it separates finances and allows living apart while remaining married. Some benefits include:
- Avoiding asset division and remaining joint owners of property
- Preserving health insurance or military benefits
- Testing the marriage before pursuing divorce
During legal separation, you can divide debt and determine spousal support. However, the property remains undivided. If you later divorce, the court will equitably divide marital assets unless a postnuptial agreement states otherwise.
Legal separation can postpone asset division for those wishing to separate without splitting property immediately. But it comes with emotional and legal complexities to weigh carefully. Consulting a family law attorney is crucial before choosing legal separation.
What Are Risks of Avoiding Property Division in Divorce?
Attempting to avoid dividing property in divorce has risks, including:
Hidden Assets and Debts
Failing to fully disclose assets and liabilities will derail divorce settlement talks quickly. Hiding assets is illegal and can nullify agreements.
Failure to Divide Retirement Funds
Retirement accounts accrued during marriage are marital assets. Not splitting them equitably can have major long-term consequences for the lower-earning spouse.
Home Ownership Issues
Jointly owning a home after a divorce is rarely recommended. Not buying out the other spouse’s share of home equity can create future legal problems.
Tax Implications
Asset transfers between spouses during divorce have tax impacts. Improper division of property could result in unwanted tax bills.
Inequitable Outcomes
Uneven property division often leaves one spouse at a severe disadvantage, especially if they gave up career opportunities.
Attempting unconventional asset division methods without professional guidance is risky. The potential pitfalls require a thorough analysis of your situation.
Getting Skilled Legal Advice Is Critical – Consult a Georgia Divorce Attorney
The bottom line is divorcing without splitting property requires an experienced attorney’s assistance. Here’s how a lawyer can help:
- Advise if status-only divorce or legal separation is appropriate for you
- Ensure asset disclosure and division follow state laws
- Craft effective prenuptial and postnuptial agreements
- Negotiate mediated divorce settlements favorable to you
- Avoid pitfalls like hidden assets and debts
- Explain legal options if your spouse pressures you to divide assets in their favor
- Ensure the overall settlement agreement meets your short and long-term needs
Navigating divorce asset division is complicated. A divorce lawyer knows how to protect your rights, advocate for a fair property settlement, and avoid potentially negative consequences.
Don’t attempt to sidestep dividing assets in divorce without trusted legal guidance. Connect an experienced divorce and family law attorneys today to discuss your situation in a free consultation. With an in-depth understanding of asset division, we can help you make informed choices to reach the best outcome during this significant transition. Contact us today to discuss your options.
