In a high-asset divorce, property division can get complicated, especially when that division involves marital debt. Being aware of how this debt affects asset division is a must when trying to make sense of the divorce process.
What falls into the category of marital debt?
Marital debt includes any liabilities incurred during the marriage, regardless of whose name is on the account. This can range from mortgages and credit card balances to personal loans.
How does equitable distribution of debt factor in?
Georgia follows an equitable distribution model for dividing marital assets and debts. This doesn’t mean an equal split but rather a fair one based on several factors. Following this model, when splitting assets and liabilities, courts consider the length of the marriage, each spouse’s contributions, and their earning potential.
The impact on high-asset divorces
In divorces with substantial assets, the division of debt can also influence the final outcome. High-net-worth individuals often have complex portfolios, which include investments, business interests, and real estate.
Significant debt can reduce the value of these assets and affect how the court distributes the property. For instance, a spouse who assumes a larger share of marital debt may receive a greater portion of the assets to offset that burden.
The broader implications of marital debt
Marital debt in high-asset divorce requires strategic handling, as it directly influences the financial outcome. By focusing on the specific debts and assets involved, parties can navigate the process with clarity and ensure a resolution that aligns with their unique financial circumstances.
