Splitting assets is an important part of divorce. In some divorce cases, the list of assets is relatively straight forward: a family home, bank accounts, vehicle, retirement assets and maybe some securities. High-net worth families have more to take into account. From additional pieces of property to business interests, these divorces require a strategic approach.
Part of this strategic approach is a basic knowledge of how the state impacts the process. Divorce is a creature of state law, meaning each state can move forward with its own nuances. In Georgia, the law calls for equitable distribution of marital assets. This does not always translate to a 50/50 split but instead aims to provide each party to the divorce with a fair portion of assets.
It is important for those who are going through a divorce to take each asset into consideration. Certain assets, like a vacation home, may hold economic and emotional value. The following will provide three steps that will help provide foundational knowledge on how the legalities apply.
Step #1: Valuation
The first step is to get a better understanding of how much the asset is worth. Valuing any property is difficult. Although consumer tools like Zillow and other real estate sites can give you a broad idea of the worth of the asset, it is often wise to bring in a professional to take other factors, such as the state of the market, into account. The real estate market is not an exact science but there are methods that can help you to get a good idea of the value of the property.
Step #2: Keep or sell
Once you have a reasonable idea of the value of the property, you can begin to discuss next steps. If one party wishes to retain ownership, you can negotiate other assets of similar value in exchange. If both agree to sell, you can determine how to split the proceeds.
Step #3: Include plan in settlement agreement or make case in court
If you are able to come to a resolution, you can put together a settlement agreement that outlines who will get the vacation property or how you will split the proceeds. If you cannot come to an agreement, you will need to gather evidence to support your case in court. The court will then review each side’s argument and make a decision. It is wise to seek a legal professional with experience in these matters to better ensure your strategy to address this issue is tailored to your situation. This precision mitigates the risk of surprises after you finalize the divorce.