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Things to consider during property division

For Georgia couples who are headed towards divorce, it may seem as if the process is confusingly intricate. Each divorce will be different, and process can be complex. However, gaining a basic understanding the process of property division may help ease worry.

When dividing property there are a number of issues that need to be considered before a couple reaches a settlement agreement. For example, individuals might be overly considered with the nominal value of an asset without taking the tax implications of the property into account. A couple who is interested in separating amicably and equitably may be able to reach a more agreeable settlement keeping track of how the taxes might affect each party's wealth in the future.

In some cases, decisions regarding the ownership of a couple's primary residence may be difficult to make. Deciding whether to sell the house to a third party, transfer full ownership to another spouse or maintain joint ownership of the property might be complicated. When the couple sells the home, they are given a capital gains tax break of $500,000, and the transfer of ownership from both spouses to a single spouse is not taxable. In addition, if the couple decided to maintain joint ownership of the home while only one partner lives there, the non-resident party might be able to consider his or her share of the mortgage payments as part of a support obligation.

Tax considerations and ownership of the family home are only two aspects of negotiating an equitable division of property when trying to reach a divorce settlement. Other issues might include dividing a couple's retirement accounts, child custody and support payments. A family law attorney could help a person going through a divorce protect his or her rights throughout negotiations with the other party.

Source: Nerd Wallet, "Divorce: Making Sense of the Confusion", J. Kevin Stophel, June 03, 2014

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