In Georgia, marital property (assets and debts) is divided based on equitable distribution, meaning the division must be fair but not necessarily equal (50/50). The court considers several factors to determine how assets and debts should be divided.

1. Understanding Marital vs. Separate Property

Before dividing assets and debts, the court distinguishes between marital and separate property:

✅ Marital Property (Divided in Divorce)

These are assets and debts acquired during the marriage, including:

These are assets and debts owned before the marriage or received individually:

• Inheritance or gifts given to one spouse
• Property owned before marriage (unless commingled)
• Personal injury settlements (except for lost wages)
• Pre-marital debts (student loans, credit cards)

⚠️ Important: If separate property is mixed with marital assets (e.g., using an inheritance to buy a marital home), it may be considered marital property.

2. How Georgia Courts Divide Marital Assets and Debts

Since Georgia follows equitable distribution, judges divide property based on fairness, not a strict 50/50 split. The court considers:

✔ Length of the Marriage – Longer marriages typically result in a more even split.
✔ Each Spouse’s Financial Contributions – Who earned more, who contributed to household expenses.
✔ Non-Financial Contributions – A stay-at-home parent’s role is valued in asset division.
✔ Earning Potential – If one spouse has significantly higher income or job prospects, the other may receive more assets.
✔ Custody of Children – The parent with primary custody may get the marital home.
✔ Marital Misconduct – If one spouse wasted assets (e.g., gambling, spending on an affair), the court may adjust the division.

3. How to Divide Major Assets

Here’s how common assets are divided in Georgia divorces:

Real Estate (Marital Home)

• If both spouses contributed, the home is marital property.
• Options:

✅ One spouse buys out the other’s share.
✅ Sell the home and split the proceeds.
✅ The custodial parent may stay in the home until children turn 18.

Retirement Accounts (401(k), IRA, Pension)

• If contributions were made during the marriage, they are subject to division.
• A Qualified Domestic Relations Order (QDRO) is required to divide 401(k)s and pensions.
• IRAs can be split through transfer without penalties.

Vehicles

• If the car was purchased during marriage, it’s divided fairly.
• If a spouse bought it before marriage, it’s separate property.

Business Ownership

• If a business was started during the marriage, it is considered marital property.
• Courts may:
  ✅ Award full ownership to one spouse with financial compensation to the other.
  ✅ Order a business valuation to determine how much the other spouse should receive.

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4. How to Divide Debts

Marital debts are divided fairly between spouses, just like assets.

✅ Marital Debts (Shared Responsibility)

• Mortgages & Car Loans – If both names are on the loan, both remain responsible.
• Credit Card Debt – If incurred during the marriage, it’s typically shared.
• Joint Loans – Loans co-signed by both spouses are marital debts.

Separate Debts (Not Shared)

• Student loans (unless taken out during the marriage for both spouses’ benefit).
• Personal loans not used for family expenses.

⚠️ Tip: Even if a divorce decree assigns a debt to one spouse, creditors can still hold both spouses liable if the debt was joint.

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5. Protecting Your Assets in Divorce

Gather Financial Documents – Bank statements, tax returns, mortgage info, credit reports.
Avoid Mixing Separate & Marital Assets – Keep inheritances or personal property in a separate account.
Consider a Prenuptial/Postnuptial Agreement – This helps define asset division in advance.
Work with a Divorce Attorney – Legal guidance ensures a fair asset distribution.

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Key Takeaways

✅ Georgia follows equitable distribution, meaning assets and debts are divided fairly but not always equally.
✅ Marital assets & debts (acquired during marriage) are split, while separate property is retained.
✅ Courts consider income, contributions, children, and fairness when dividing property.
✅ Debts are divided fairly, but joint debts remain a liability unless refinanced.