It’s no secret that divorce is hard, but it can be even harder when you don’t understand certain details about the process, such as how real estate assets are divided during divorce in Georgia. Whether your divorce is handled by a mediator or is taken to court, whether you hope to retain or sell your shared real estate, it’s smart to educate yourself about the two different kinds of assets in divorce settlements: marital property and separate property. Here is a quick and easy guide about how marital property and separate property are classified and split during divorce in Georgia.
Why classifying assets matters
Understanding how property is classified is crucial in determining how assets are divided during divorce in Georgia. If you are going to court to settle your divorce, it is imperative that you understand how your property is classified. This knowledge will help you anticipate how assets will be divided and ensure you receive your fair share—if a percentage of your property is considered separate property that is rightfully and legally yours, you’ll want to know about that. You’ll also want to know if there are any circumstances that will prevent you from making claims to separate and/or marital property.
Even if you and your spouse decide to handle your divorce through a mediator and avoid court, it’s smart to understand the basics in order to split your your property as fairly as possible, though the rules of division are far more flexible in divorce cases settled with a mediator.
Property classification in Georgia
There are two kinds of assets during divorce in Georgia: marital property and separate property. This may seem pretty straightforward, but sometimes the lines between these two kinds of properties blur. Every divorce case has its own unique circumstances, and this often complicates the classification and division of assets. If you have questions about how to classify your property, a lawyer or mediator will be able to guide you based on the specifics of your situation.
Marital Property
Marital property is any asset that is owned by both spouses, though the property may not be legally in both spouses’ names. In terms of real estate property, this includes:
- Property purchased during the marriage
- The equity of any property with mortgage payments made by both spouses
- The value added to the property due to repairs or updates made during the marriage
Even if you are in a case where a house was left to or purchased by your spouse, you may have claims to marital assets based on any investments on your part towards the property. If that is the case, ensure that you have proof of your contributions in order to receive your fair share during the division of assets.
Separate Property
This is any asset which is owned only by one spouse. Claims to separate property often have to be proven in court with evidence, so keep that in mind if you are trying to claim any of your real estate property as separate.
Examples of separate property include:
- A house bought and fully paid off by one spouse before the marriage
- A property inherited by or gifted to only one of the spouses, either before or during the marriage
However, claims to separate assets can get complicated. For example, if you inherited a property before the marriage, but your spouse contributed to paying off that house or making repairs during the marriage, that inherited property or that property’s equity may qualify as marital.
Every case is different, so make sure you are aware of all of the circumstances surrounding your property that might impact how it can be classified.
Conclusion
It can be tricky to know the unique differences between marital and separate real estate assets during divorce in Georgia. The line between these two kinds of properties is often blurred due to unique circumstances. The big thing to remember is to remain aware of your property’s history. This will give you a fuller understanding of your property’s “gray area,” so you can know how it can be classified and how it might be divided.
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