How shared assets are split during a divorce

Getting a divorce in Georgia is more complicated than most people realize. After spending years with a spouse, a divorcee might not be sure what their financial future has in store for them. That is why it is so important to figure out one’s finances as soon as separating becomes a real possibility. Splitting assets is much easier when both parties know all of their rights and responsibilities.

A couple’s financial situation can generally be broken down into four different categories. The first category is their shared assets. That includes bank accounts, bonds, investments and physical property. Before splitting retirement accounts, divorcees may first consult with an attorney so that they fully understand their tax obligations. All debts and liabilities fall into the second category, and the party that keeps the property is almost always responsible for any debt related to that property.

The third category is income, but that only matters when child or spousal support must be taken into consideration. The final category is made up of expenses like property tax and home insurance. Much like debt, those expenses usually go to the individual who is keeping the property. Filing taxes separately might seem easier, but that can cost a divorced couple quite a bit of money. Many divorcees file jointly through the end of the year so that their taxes remain the same.

Separating assets is one of the most difficult aspects of getting a divorce, and that is why so many people turn to lawyers who have experience dealing with divorces and division of property. An attorney may act as an unbiased mediator so that the joint assets are split fairly. Once an agreement has been reached, they may then transfer those assets between the two parties.