Divorce Settlement Agreement in Georgia

What is a Divorce Settlement Agreement in Georgia?

What is a Divorce Settlement Agreement

A divorce settlement agreement in Georgia, also known as a marital settlement agreement or property settlement agreement, is a legally binding document where both spouses agree on the terms of their divorce. It outlines the division of assets, responsibilities, and finances, including child custody, visitation, spousal support, and property division. You can read this article to learn important aspects of getting the best possible outcome in your divorce.

A settlement agreement is a requirement for any contested divorce or uncontested divorce in Georgia. Additionally, any couple seeking a legal separation will need a separate maintenance agreement which effectively serves the same purpose.

Purpose and Contents

Legally Binding: A divorce settlement agreement is a legally binding contract between the divorcing parties. The Agreement exists to delineate terms for major areas of dissolving a marriage. It includes the assignment of ownership, control, and defining conditions for raising minor children, dividing physical property, assigning cash, investments, retirement accounts, debts, etc. When the family court judge approves it, the Agreement becomes part of the final divorce decree and immediately goes into effect.

What It Covers

It covers the primary aspects of the divorce, including:

Child Custody and Visitation: Determines custody of minor children and the visitation schedule. This includes determining physical and legal custody, as well as, the nature of each being sole custody or joint custody.

Spousal Support): Outlines any support payments (alimony) one spouse will pay to the other. Spousal support may be temporary or permanent. Several factors affect the court’s decision on awarding spousal support.

Property Division: Specifies how the couple’s physical assets will be divided. Georgia is an “equitable distribution” state, so the property is divided fairly, not necessarily equally, based on various factors. The property division process recognizes property as either marital property or separate property. Examples of property that typically fall under equitable distribution are: homes, land, farms, other real estate, bank accounts, vehicles, boats, retirement funds, investments, collections, etc.

Marital Property vs Separate Property

Marital Property: Any property acquired during the marriage is considered marital property. This property is subject to division in a divorce.

Separate Property: Any property owned by either spouse before the marriage is considered separate property. Additionally, anything received as a gift or inheritance during the marriage is separate property. This property is not subject to division in a divorce.

Other Matters: A settlement agreement may also address debt allocation, insurance coverages, costs for special needs children, college tuition, owning a business, and other relevant issues.

Tax Implications: When planning property division you should make certain that your lawyer is competent in minimizing tax burdens. This is particularly true when dividing retirement funds and investment accounts (401k, IRA, etc.). Sometimes a legal document known as a Qualified Domestic Relations Order (QDRO) is necessary to avoid a tax obligation on an otherwise straight account transfer.

Enforcement: Once approved, the agreement will go into full force when the divorce is finalized. All points of the divorce decree property division are enforceable by the court. Failure to comply can bring contempt charges.

How It Works

Negotiation: The spouses may sort out the details directly or have their respective attorneys negotiate the terms of the agreement. When spouses can agree on their own it can lower the cost of the divorce.

Drafting: The divorce lawyers will communicate to develop mutually acceptable language covering all points. Your lawyer should confirm every detail with you, and answer any questions. You, as the client, can object to any detail and request changes and additions.

Court Approval: The agreement, as part of the divorce package, is submitted to the court for review, approval, and inclusion in your divorce decree.

Modifications

In Georgia, when a divorce is granted, both parties must wait at least two years to petition the court to modify any terms. The exception to this two-year wait period is matters of an urgent or serious nature involving minor children. An example is the custodial parent develops a substance abuse problem which creates a harmful environment for minor children. For obvious reasons, the court may move quickly to change the custodial parent or otherwise take action to remedy the problem.

Summary

The divorce settlement agreement in Georgia (and parenting plan) are perhaps the most important parts of your divorce. While every divorce has its own unique circumstances, creating an ideal settlement agreement can be complicated. Before hiring a divorce lawyer you should ask direct questions regarding their experience and knowledge. This is especially true when it comes to a contested divorce and high-asset divorce. In some cases, you need a lawyer who has a solid understanding of complex finances. You may need to hire a lawyer with resources to do forensic financial audits and search for hidden assets.