Division of Liabilities in Atlanta, GA
When you file for divorce, you must resolve not only how to divide assets but also how to share debts. The division of liabilities in Atlanta, GA, can be one of the most complex parts of the process, as these financial obligations can affect you long after your divorce is finalized.
Georgia family courts apply the principle of equitable distribution, which requires a fair—though not always equal—allocation of both property and debts. This means that a judge will examine many factors before determining how to assign marital debts. An experienced division of assets attorney from our team can guide you through this process and protect your long-term financial interests.
How Do State Courts Classify Marital Debts?
One of the first steps in debt division is determining whether a liability is marital or separate. Under O.C.G.A. § 19-5-13, Georgia courts may equitably divide both marital property and marital debts acquired during the marriage. This means that obligations such as mortgages, credit cards, and personal loans may be treated as part of the marital estate if they benefited the household. This means that obligations such as mortgages, car loans, credit cards, and even personal loans may be part of the marital estate.
When dividing marital liabilities in Atlanta, Georgia family courts consider each spouse’s financial and non-financial contributions to the household. For example, if one person stayed home to care for children while the other earned an income, the court weighs both roles in the decision. In many cases, debts are tied directly to property. If one spouse receives the marital home, they may also assume the mortgage. Similarly, if one person keeps a vehicle, they may be responsible for the corresponding auto loan. Our firm can help you document your circumstances to ensure a fair division of liabilities.
Disputes Over Separate and Shared Debts
Divorcing couples do not necessarily share all debts. A spouse typically remains responsible for debts they incurred before the marriage or for debts connected to separate property, such as inherited assets. However, disagreements often arise when one person claims that a debt did not benefit the marriage.
For instance, when a spouse spends money on gambling, hidden accounts, or extramarital relationships, the court may treat those expenses as marital waste and assign that liability solely to the one who created it. In contrast, when a person incurs debts to support the family, such as medical bills or education loans, courts are more likely to divide those debts between both spouses. These disputes are common in the apportionment of debt during a divorce in Atlanta, GA, and the outcome can significantly affect each spouse’s financial future.
Factors Courts Consider in Debt Allocation
Equitable distribution does not mean splitting debts evenly. Instead, Georgia family courts review many factors to determine fair allocation of debt in Atlanta. Judges may consider:
- Each spouse’s income and earning capacity;
- The length of the marriage;
- Each spouse’s access to separate property;
- Which spouse retains property tied to specific debts, such as a home or vehicle;
- Each person’s overall financial stability after divorce.
If one spouse has significantly greater earning potential, the court may order them to take on a larger share of marital liabilities. Likewise, if the court awards one spouse property attached to debt, it often also assigns the responsibility for that loan. Our attorneys can represent you in these negotiations or argue your case in court if an agreement is not possible.
Speak With an Atlanta, GA Attorney About Debt Allocation
The division of liabilities in Atlanta, GA, can shape your financial future just as much as the division of property. An experienced family law team protects your interests by ensuring a fair allocation of debts to preserve your financial well-being. Our attorneys at Atlanta Divorce Law Group understand how Georgia family courts approach debt allocation, and we are prepared to advocate for you. Contact our firm today to schedule a consultation with a member of our team and take the first step toward a fair resolution.
