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If you and your spouse are getting divorced, one matter that will need to be addressed is property division. This is often one of the most contentious issues because so many major assets may be involved. Your goal is to protect what you’ve earned and make sure the courts treat you fairly during the divorce process. Turn to E.N. Banks-Ware Law Firm, LLC, for aggressive advocacy of your interests.

What Are Georgia’s Property Division Rules?

Georgia follows a system of property division known as equitable distribution. “Equitable” means fair, not necessarily equal. In determining how to divide property, the ultimate aim of the court is to consider both spouses’ needs along with the facts of the case. Only marital property is subject to equitable distribution; property that is determined to be the separate property of either spouse is excluded.

Marital vs. Separate Property

Marital property is that which was acquired by either spouse during the marriage, with very few exceptions. Title to the property does not matter; even if your name alone is on a car, for example, the court can decide it is marital property.

Considering this broad definition of “marital property,” many different assets could be subject to equitable distribution. These would include pensions, retirement accounts, and other retirement benefits. Even though these assets are titled in one person’s name, and even though they were directly earned through one spouse’s work, they belong to the marriage because they were acquired during the marriage.

There are exceptions to this rule, including property that only one spouse received by inheritance or gift. These are examples of separate property, even though they were acquired during the marriage.

Separate property also includes that which was brought into the marriage and was not transferred to the other spouse. For instance, if you owned a house before marriage, it would remain yours even after you get married as long as it is not conveyed to the other spouse.

What About Appreciation in Property Value?

Although property brought into a marriage is generally considered separate, there are some limitations to this rule with respect to appreciation. The first question is whether the appreciation was active or passive.

Active appreciation means that either or both spouses took an active role in increasing the value of the asset. Take as an example a business owned by the husband. After marriage, the husband invested time and energy into the business and thereby increased its value. This is called active appreciation.

Passive appreciation, on the other hand, is an increase in an asset’s value due to outside market forces. As an example, you own a piece of land but make no effort to increase its value. Over the course of a decade, the surrounding land is developed, and the value of your land increases as a result. This is passive appreciation.

Active appreciation is considered to be marital property, subject to equitable distribution, while passive appreciation is not.

Can Separate Property Become Marital Property?

As long as separate property remains totally separate, it won’t become marital property and won’t be subject to equitable distribution. But in marriages, this often does not happen. There are several ways that separate property can become, at least in part, marital:

  • Commingling Property — Mixing your separate property with marital property is known as commingling. As an example, you take part of your inheritance (separate property), deposit it into a joint banking account (marital property), and use the money to make improvements to the marital home. Another example would be a separate vehicle brought into the marriage that your spouse begins working on or using marital funds to pay for.

  • Retitling Property — If you own a house in your name only prior to the marriage, it will remain yours even after the marriage as long as the title stays with you. However, if you retitle the property into both your and your spouse’s names, it will become a marital asset.

  • Using Property for Family — Before you get married, you own a car free and clear. After marriage, you begin using that car to take your kids to school or your family on vacation. By doing this, the vehicle has become marital property.

Property often contains marital and non-marital elements. Using the source of funds rule, a court will determine the ratio of marital to non-marital funds that were invested in the property. Source of funds determinations are complex and often require the input of experts.

Property Division Steps

There are several ways to divide property. One is to avoid court intervention by using a prenuptial agreement (before marriage) or post-nuptial agreement (after marriage) to decide who gets what in the event of divorce. If you don’t have one of these, you can still divide property once you are separated by using a separation agreement.

Where spouses cannot agree on how to divide property, they must ask the judge to make an equitable distribution of it. In short, the court will divide marital assets by considering a number of factors, including:

  • The income and earning potential of each spouse

  • The future needs of each spouse

  • Each spouse’s debts

  • Each spouse’s conduct during the marriage, including any wasting of assets

Once the court takes all relevant factors into consideration, it will divide property in a manner it deems to be fair, or equitable.

Let a Lithonia Divorce Attorney Help You Today

Property divisions are complicated and can take into account many economic and non-economic factors. You need an experienced divorce attorney to help you navigate Georgia’s equitable distribution laws. Trust E.N. Banks-Ware Law Firm, LLC, for all of your family law needs. Contact us to schedule a consultation.