If you are facing a divorce, you’re likely concerned about how your “assets” or simply, the things that you and your spouse own together, will be divided. Georgia is what is called an “equitable distribution state” which means that all marital property obtained during the marriage will be split between the divorcing spouses. There is also Non-Marital property, which refers to the money or other assets that each spouse had before the marriage.
One of the most valuable assets to be divided in a divorce is the 401(k), IRA, or other retirement accounts, so it’s very important to closely examine how money in a retirement account will be divided.
Georgia follows a model of “equitable distribution” which does not necessarily mean that things will be split 50/50. When you work with the experienced attorneys at Hobson & Hobson, we will review your unique situation and give you advice custom tailored to your unique situation. Before assets can be divided, they are first categorized as either Marital Property or Separate Property. Separate Property (property owned before the divorce or gifted specifically to one spouse) is kept by the spouse who owns it; marital property is divided through “equitable distribution”.
Houses, cars, savings accounts that existed before the marriage all create their own unique challenges in determining how to fairly categorize and then divide them. IRAs, 401(k) and other retirement accounts used to create a challenge because they have a unique tax status and cannot be “liquidated”, meaning you typically pay early-withdrawal penalties if you deduct money from certain types of retirement accounts.
The QDRO, or Qualified Domestic Relations Order is a special court order to divide the 401(k), IRA, or other retirement account without changing the account’s tax status. Instead, the retirement account is split into two accounts and then renamed for the individual spouses.
That is a question of how the funds in the retirement accounts will be categorized; community property or separate property. While each case is unique, generally the funds would be considered community property if the income that contributed to the retirement account was earned while the spouses were married.
It’s possible. If you suspect that your spouse is hiding money or that there are accounts you are unaware of, talk to the experienced attorneys at Hobson & Hobson, P.C. today. If you choose to work with us, we will do a detailed financial overview of your situation and ensure that you are getting the funds that you are entitled to.
No matter what type of complex financial situation you are facing in your divorce, we can help. We have experience in handling very large asset division cases and work with a network of financial experts and forensic accountants when needed. Our team will work with you each step of the way towards the best possible outcome. To learn more about how we can help you, contact our office for a free initial consultation with us today.
We have three options for the first meeting with a member of Hobson & Hobson, click here to read about how to take the first step.
136 Fairgrounds St NE
Marietta, GA, 30060
141 Railroad Street, Suite 202
Canton, GA, 30114