The division of assets during a divorce is a common concern, especially for couples that own a rental property.
When it comes to deciding who gets it, the courts follow specific guidelines to ensure fairness and equity in the distribution of assets.
Equitable division principle
Georgia follows the principle of equitable division when it comes to dividing property during a divorce. Equitable division does not necessarily mean an equal 50-50 split, but rather a fair distribution based on various factors.
Separate vs. marital property
First, it is important to distinguish between separate and marital property. Separate property includes assets owned by one spouse before the marriage, while marital property consists of assets acquired during the marriage. In most cases, separate property remains with the original owner, while marital property is subject to division.
Contributions and financial contributions
Georgia courts also consider each spouse’s contributions to the property. This includes financial contributions such as mortgage payments, property taxes, and maintenance costs. Courts may also consider non-financial contributions, such as the time and effort spent on property upkeep.
Negotiation and settlement
Spouses can also negotiate and reach a settlement agreement outside of court. This allows them to have more control over the division of assets, including the rental property. A well-crafted agreement can help avoid prolonged legal battles. If spouses cannot agree on the division of the property, the court will make the final decision.
Although Georgia has one of the lowest divorce rates at 2.2 per 1,000 people, many people still find it is the best option for them. When that divorce involves additional assets, such as a rental property, it can create added complexities.