Divorce is a complex process. Dividing marital assets fairly, for example, is rarely a walk in the park. Georgia adheres to an equitable division standard, meaning assets acquired during a marriage are split based on what’s fair, not necessarily a 50/50 split, in the event of a litigated property division process.
While some assets are easily valued and divided, others pose a significant challenge. Couples who are considering divorce in the Peach State can benefit from proactively considering how they’ll want to address marital assets that can cause headaches, as a result.
Retirement accounts
401(k)s, IRAs and pensions hold significant value, but dividing them during divorce requires careful consideration. The challenge lies in determining the marital portion. Contributions made before the marriage might be considered separate property, while contributions and growth during the marriage are marital property subject to division.
Valuing these accounts can be tricky due to fluctuating markets and future growth potential. Additionally, dividing them often involves a Qualified Domestic Relations Order (QDRO) – a court order instructing the plan administrator on how to distribute benefits. This can be a time-consuming process.
Businesses
If one or both spouses own businesses, disentangling them from the marital estate can be a complex affair. Factors like business valuation, ownership structure and future earning potential all come into play. Dividing ownership can be difficult, especially if the business is closely held.
Selling the business might be necessary, but this can disrupt ongoing operations. In some cases, one spouse might buy out the other’s share. This would require a fair valuation and might impact the financial stability of both parties.
Intellectual property
Intangible assets like patents, copyrights and trademarks can be valuable marital assets. Determining their value can be challenging as it depends on future marketability and potential licensing fees. Additionally, ownership rights might need to be untangled, especially if the intellectual property was developed during the marriage with contributions from both spouses.
Dividing complex marital assets in Georgia is a process that generally benefits from the guidance of a reliable legal team. They can help divorcing couples navigate the legal intricacies, value assets accurately and advocate for a fair and equitable division. Ultimately, clear communication and a focus on achieving a fair outcome can be key to a successful divorce, perhaps especially when dealing with complex assets.