How Marital Property Is Divided in Savannah (Chatham County) Divorce Cases

How Marital Property Is Divided in Savannah (Chatham County) Divorce Cases

Dividing property can be one of the most important—and sometimes most complicated—parts of a divorce. A couple may need to determine what happens to the marital home, retirement accounts, bank accounts, vehicles, investments, personal property, debts, and other financial interests accumulated during the marriage.

If your divorce is filed in Savannah or elsewhere in Chatham County, Georgia law governs how marital property is divided. Georgia uses principles of equitable division, which means marital property is divided fairly based on the circumstances of the case rather than automatically being divided 50/50.

Understanding what property may be considered marital, what may remain separate, and how different assets can be handled can help you prepare for the financial issues involved in your divorce.

Is Marital Property Divided 50/50 in Chatham County?

Not necessarily.

Georgia is an equitable distribution state. Courts seek an equitable division of marital property based on the circumstances rather than simply dividing every asset equally between the spouses.

Parents and spouses sometimes assume that everything must be split down the middle. In reality, determining an appropriate division can involve looking at the property accumulated during the marriage, each spouse’s interests in those assets, and the circumstances surrounding the case. The same Georgia property-division principles apply in divorce cases heard in Chatham County Superior Court.

What Is Considered Marital Property?

Marital property generally includes assets acquired by either spouse during the marriage through the efforts of one or both spouses. Depending on the circumstances, marital property may include:

• The marital home
• Bank and savings accounts
• Retirement accounts and pensions
• Investment accounts
• Vehicles
• Business interests
• Furniture and other personal property
• Other assets accumulated during the marriage

An asset does not necessarily belong exclusively to one spouse simply because only that spouse’s name appears on the account, deed, or title. Determining when and how an asset was acquired can be important when deciding whether it should be included in the marital estate.

What Is Separate Property?

Some property may remain separate rather than being divided in the divorce. Separate property can include assets a spouse owned before the marriage or certain property received individually through inheritance or gift. However, the distinction is not always straightforward.

Separate and marital funds can sometimes become mixed, marital money may be used to pay expenses associated with separately owned property, or an asset may increase in value during the marriage. In those situations, determining what portion of the asset is marital and what portion remains separate can require a closer review of its financial history. Documents showing when an asset was acquired and where the money came from can become particularly important.

What Happens to the Marital Home?

The marital home is often one of the largest assets involved in a Chatham County divorce. Several outcomes may be possible. One spouse may keep the home, the property may be sold and the proceeds divided, or the spouses may agree to delay a sale for a period of time. Important considerations may include:

• The value of the property
• The remaining mortgage balance
• The amount of marital equity
• Any separate-property interest
• Whether either spouse can afford the home after divorce
• Whether refinancing is possible
• The effect of keeping the home on the division of other assets

A divorce decree does not automatically remove a spouse from a mortgage. If one spouse will keep the home, addressing the existing loan can therefore be an important part of the overall agreement.

How Are Retirement Accounts Divided?

Retirement assets can represent a significant portion of a couple’s marital property. Depending on the circumstances, contributions or benefits accumulated during the marriage may have a marital component even when the account is held only in one spouse’s name. Retirement assets may include:

• 401(k) accounts
• Pensions
• IRAs
• Government retirement benefits
• Other employer-sponsored retirement plans

Dividing certain retirement benefits may require additional legal documents or specialized orders. It can also be important to distinguish benefits earned before the marriage from those accumulated during the marriage.

Because retirement accounts can have long-term financial and tax implications, their value should be considered as part of the overall property division rather than simply looking at the current account balance.

What Happens to Marital Debts?

Property division involves more than deciding who receives the assets. Debts accumulated during the marriage may also need to be addressed. These may include:

• Mortgages
• Credit card balances
• Vehicle loans
• Personal loans
• Home equity loans or lines of credit
• Other financial obligations

The divorce agreement or court order may determine which spouse is responsible for particular debts.

However, an agreement between spouses does not necessarily change a creditor’s contractual rights. If both spouses remain legally obligated on a loan or account, the creditor may still have rights against both of them even if the divorce assigns responsibility for the debt to only one spouse. That makes it important to consider both the divorce agreement and the underlying financial obligation.

What If the Spouses Agree on Property Division?

Many couples resolve property issues through negotiation or mediation rather than asking the court to decide every asset individually. An agreement can address who receives particular assets, responsibility for debts, whether property will be sold, how equity will be divided, and other financial issues.

Once an agreement is reached, the terms can generally be incorporated into the final divorce documents for court approval. Reaching an agreement can give spouses greater control over the financial outcome of the divorce, but it is still important to understand the value and consequences of the assets and obligations being divided before accepting a settlement.

What If the Spouses Cannot Agree?

If property disputes cannot be resolved through negotiation or mediation, the unresolved issues may ultimately be presented to the court. The parties may need to provide evidence concerning ownership, value, debt, separate-property claims, and other financial circumstances.

Financial records can become particularly important when there is disagreement about whether an asset is marital or separate, how much an asset is worth, or what portion should be included in the marital estate. The court can then determine how the marital property should be divided as part of the final divorce.

What Financial Documents Should You Gather?

Preparing early can make property division easier to evaluate. Useful records may include:

• Recent bank and investment statements
• Retirement account statements
• Mortgage and home equity loan statements
• Property deeds
• Vehicle titles and loan statements
• Tax returns
• Credit card statements
• Business financial records
• Appraisals or valuation information
• Documents showing assets owned before marriage
• Records relating to inheritances or gifts
• Documents showing the source of funds used to acquire significant property

Having organized financial information can help identify the assets and debts involved and clarify which issues may require additional investigation.

Property Division in Chatham County Superior Court

Divorce cases filed in Savannah and throughout Chatham County are generally handled by Chatham County Superior Court. The same Georgia laws governing equitable division apply, but the way a particular case progresses can depend on the issues involved, whether the spouses exchange information through discovery, whether mediation is successful, and whether disputed financial issues ultimately require a hearing or trial.

Some property cases are relatively straightforward. Others can involve disputes over separate property, retirement accounts, business interests, home equity, or assets accumulated over many years. Understanding the financial picture early can make it easier to evaluate settlement options and prepare if the court ultimately needs to resolve disputed issues.

Experienced Guidance for Property Division in Chatham County

Property division can affect your financial position long after a divorce is final. Understanding which assets may be marital, identifying potential separate-property interests, accurately evaluating significant assets, and considering responsibility for debts are all important parts of reaching an informed resolution.

Brendan Dalton represents clients in Savannah, throughout Chatham County, and across Georgia in divorce, property division, child custody, child support, legitimation, and other family law matters.

Flat Fee Family Law provides clear, upfront pricing so clients understand the cost of representation before moving forward. If you are facing a divorce in Chatham County and have questions about dividing property, contact Flat Fee Family Law to schedule a consultation.