In this video I will be discussing the topic of what happens if you place your spouse’s name on property that you own prior to marriage. To start, unless you do something to change this rule of law, or unless lump sum alimony is awarded, which is a separate video that I’ve done, property that you own prior to marriage remains your separate non-marital property, and will not be awarded to your spouse in a divorce.
In simpler terms, you owned it before marriage, you will continue to own it after marriage. Your spouse will have no interest in it. However, and it is a frequent occurrence, that after marriage a spouse – say the wife – will put her husband’s name on the title of the property that the wife owned prior to marriage. She will do so with good intentions, and think nothing of the legal consequences if the parties ever get a divorce and unfortunately, or fortunately, depending on which side of the issue you are on, there are indeed major legal repercussions to this act.
In general, no matter your intent, unless there is strong evidence that placing your spouse’s name on the title of the property was not meant as a gift, under Georgia law, your placing your spouse’s name on property you owned before marriage will be seen as gifting him or her the property. What this means is that you will lose your non-marital interest in the property, and the entirety of the property will suddenly become marital property, as if you never owned it before marriage. It works like this. Say husband owns a house prior to marriage that has $200,000 of equity in it.
Husband marries wife, and a few years into the marriage, husband puts wife on the title to the home, so they own the home jointly. Then, a few years later, the parties get a divorce. What is the effect of putting the wife’s name on that title? Well, if husband had not put his wife’s name on the title, at the time of the divorce, the $200,000 of equity would remain his premarital property, and wife would not be entitled to any of it, because it’s all husband’s premarital property. Nor would she be given any credit for any of the appreciation that may have accrued over the years on the property.
However, now, because he did put his wife on the title of the property, she is now entitled to 50% on the entire equity in the home, plus 50% of any appreciation on the home, and 50% of any mortgage pay down that occurred during the marriage. The long and short of it is do not place your spouse’s name on property that you owned prior to marriage without first consulting an attorney.
As to legal impact this might have on your rights to that property, if you do not intend a gift, if you intend to transfer to protect the home from creditors, a transfer of title to your spouse can be accomplished in a way that does not potentially gift your non-marital interest away. Each divorce is different, and the circumstances unique, and in each divorce there are traps like this that can be taken advantage of by a divorcing spouse. At Shaw Law Firm, we understand the nuances of family law very well, and we welcome your inquiries and telephone calls. Thank you.
In this video I will be discussing the topic of what happens if you place your spouse’s name on property that you own prior to marriage. To start, unless you do something to change this rule of law, or unless lump sum alimony is awarded, which is a separate video that I’ve done, property that you own prior to marriage remains your separate non-marital property, and will not be awarded to your spouse in a divorce.
In simpler terms, you owned it before marriage, you will continue to own it after marriage. Your spouse will have no interest in it. However, and it is a frequent occurrence, that after marriage a spouse – say the wife – will put her husband’s name on the title of the property that the wife owned prior to marriage. She will do so with good intentions, and think nothing of the legal consequences if the parties ever get a divorce and unfortunately, or fortunately, depending on which side of the issue you are on, there are indeed major legal repercussions to this act.
In general, no matter your intent, unless there is strong evidence that placing your spouse’s name on the title of the property was not meant as a gift, under Georgia law, your placing your spouse’s name on property you owned before marriage will be seen as gifting him or her the property. What this means is that you will lose your non-marital interest in the property, and the entirety of the property will suddenly become marital property, as if you never owned it before marriage. It works like this. Say husband owns a house prior to marriage that has $200,000 of equity in it.
Husband marries wife, and a few years into the marriage, husband puts wife on the title to the home, so they own the home jointly. Then, a few years later, the parties get a divorce. What is the effect of putting the wife’s name on that title? Well, if husband had not put his wife’s name on the title, at the time of the divorce, the $200,000 of equity would remain his premarital property, and wife would not be entitled to any of it, because it’s all husband’s premarital property. Nor would she be given any credit for any of the appreciation that may have accrued over the years on the property.
However, now, because he did put his wife on the title of the property, she is now entitled to 50% on the entire equity in the home, plus 50% of any appreciation on the home, and 50% of any mortgage pay down that occurred during the marriage. The long and short of it is do not place your spouse’s name on property that you owned prior to marriage without first consulting an attorney.
As to legal impact this might have on your rights to that property, if you do not intend a gift, if you intend to transfer to protect the home from creditors, a transfer of title to your spouse can be accomplished in a way that does not potentially gift your non-marital interest away. Each divorce is different, and the circumstances unique, and in each divorce there are traps like this that can be taken advantage of by a divorcing spouse. At Shaw Law Firm, we understand the nuances of family law very well, and we welcome your inquiries and telephone calls. Thank you.
Well, that depends. If you have an uncontested divorce in which all issues are settled, or if you have a case and were able to reach a settlement before the need to go to court, then you will not need to go to court except for maybe five minutes to take a routine final. But if there are contested issues in the divorce, yes, you will need to go to court.
You will testify, and other people may testify on your behalf. It just depends on the case. So you will need to expect to testify, but any good attorney will prep you for your testimony, and most of our clients do very well on the stand. The one thing to keep in mind is you need to tell the truth because not telling the truth can often be more harmful than telling the truth. But other than that, you will be prepped and prepared to testify.
By: Scott Shaw
Well, that depends. If you have an uncontested divorce in which all issues are settled, or if you have a case and were able to reach a settlement before the need to go to court, then you will not need to go to court except for maybe five minutes to take a routine final. But if there are contested issues in the divorce, yes, you will need to go to court.
You will testify, and other people may testify on your behalf. It just depends on the case. So you will need to expect to testify, but any good attorney will prep you for your testimony, and most of our clients do very well on the stand. The one thing to keep in mind is you need to tell the truth because not telling the truth can often be more harmful than telling the truth. But other than that, you will be prepped and prepared to testify.
By: Scott Shaw
Under Georgia law, there are 13 different reasons for a divorce and reason number 13 says the marriage is irretrievably broken and there’s no chance to patch it up. That’s all you need to do. You need to allege that the marriage is irretrievably broken and you can’t patch it up. Now your spouse can actually contest even that issue, but it’s not done very often. In the end, you really don’t need a reason other than you guys can’t get along anymore.
But if you have a reason, there are 12 other reasons as well such as adultery, cruelty, drug abuse, and many other factors that are sometimes relevant to a divorce. Quite often, we take this issue for granted because it’s just a routine issue and no one is going to contest the need for the divorce, but in the right case, the grounds for divorce can be very critical.
By: Scott Shaw
Under Georgia law, there are 13 different reasons for a divorce and reason number 13 says the marriage is irretrievably broken and there’s no chance to patch it up. That’s all you need to do. You need to allege that the marriage is irretrievably broken and you can’t patch it up. Now your spouse can actually contest even that issue, but it’s not done very often. In the end, you really don’t need a reason other than you guys can’t get along anymore.
But if you have a reason, there are 12 other reasons as well such as adultery, cruelty, drug abuse, and many other factors that are sometimes relevant to a divorce. Quite often, we take this issue for granted because it’s just a routine issue and no one is going to contest the need for the divorce, but in the right case, the grounds for divorce can be very critical.
By: Scott Shaw
Dividing automobiles is sometimes simple. If the automobile is in each respective parties names and each respective party owes the debt in the automobile, then that’s not a problem. The problem comes, not from the title on the automobile which can easily transfer, the problem comes by whose name is on the debt that financed the automobile because absolutely, unless there’s no other choice, you do not want to give your ex-spouse the car that you’re liable to owe the money on. That just leads to bad consequences and that’s an issue we need to address in many divorces.
By: Scott Shaw
Dividing automobiles is sometimes simple. If the automobile is in each respective parties names and each respective party owes the debt in the automobile, then that’s not a problem. The problem comes, not from the title on the automobile which can easily transfer, the problem comes by whose name is on the debt that financed the automobile because absolutely, unless there’s no other choice, you do not want to give your ex-spouse the car that you’re liable to owe the money on. That just leads to bad consequences and that’s an issue we need to address in many divorces.
By: Scott Shaw
In equitable division, one of the most issues that come up is to try to ascertain what is marital property and what is not marital property. Because if your property’s determined to be non-marital property, it cannot be divided according to accrual distribution. What non-marital property is, generally speaking, is if you own the property prior to marriage, you inherited the property or you were gifted the property. If you can prove that, the property remains yours.
One of the most complicating factors is what if you have non-marital property that has both portions of marital and non-marital aspects to it. Valuing that property and proving up your non-marital interest is one of the most valuable issues that a good attorney can do for you. Whereas, marital property is all subject to be divided between the parties and the spouses in a divorce.
By: Scott Shaw
In equitable division, one of the most issues that come up is to try to ascertain what is marital property and what is not marital property. Because if your property’s determined to be non-marital property, it cannot be divided according to accrual distribution. What non-marital property is, generally speaking, is if you own the property prior to marriage, you inherited the property or you were gifted the property. If you can prove that, the property remains yours.
One of the most complicating factors is what if you have non-marital property that has both portions of marital and non-marital aspects to it. Valuing that property and proving up your non-marital interest is one of the most valuable issues that a good attorney can do for you. Whereas, marital property is all subject to be divided between the parties and the spouses in a divorce.
By: Scott Shaw
Temporary orders take effect during a divorce at the time the judge signs them and enters them with the clerk of court. It’s that simple. Once the order is signed, it gets entered with the clerk of court, there’s a file stamp date on it, the order is good and valid until either the divorce is dismissed, or a new order takes its place.
By: Scott Shaw
Temporary orders take effect during a divorce at the time the judge signs them and enters them with the clerk of court. It’s that simple. Once the order is signed, it gets entered with the clerk of court, there’s a file stamp date on it, the order is good and valid until either the divorce is dismissed, or a new order takes its place.
By: Scott Shaw
In equitable division, stock options are subject to be divided in a divorce. Now, stock options can be a very complicated asset to divide. Not all employer plans actually allow stock options to be divided to each party, so you often have to determine what the monetary value of the stock option is to make sure the options can be divided.
Sometimes, you have to become a trustee for your spouse. A very complicated issue, and often is very hotly contested, is what if there are contingencies to be awarded of your stock option or other investment vehicle. For example, let’s say you have options that you’ve been awarded, but you only get them if you remain in the company – the golden handcuffs or something. You can argue that those options, even though it’s your option to quit the company, should not be awarded as marital property because if you don’t work the four years after the marriage, you don’t get them.
These are hotly contested issues. But, in general, your typical stock option that has been invested during the marriage needs to be valued and the property is divided in equitable division in the State of Georgia.
By: Scott Shaw
In equitable division, stock options are subject to be divided in a divorce. Now, stock options can be a very complicated asset to divide. Not all employer plans actually allow stock options to be divided to each party, so you often have to determine what the monetary value of the stock option is to make sure the options can be divided.
Sometimes, you have to become a trustee for your spouse. A very complicated issue, and often is very hotly contested, is what if there are contingencies to be awarded of your stock option or other investment vehicle. For example, let’s say you have options that you’ve been awarded, but you only get them if you remain in the company – the golden handcuffs or something. You can argue that those options, even though it’s your option to quit the company, should not be awarded as marital property because if you don’t work the four years after the marriage, you don’t get them.
These are hotly contested issues. But, in general, your typical stock option that has been invested during the marriage needs to be valued and the property is divided in equitable division in the State of Georgia.
By: Scott Shaw
In a divorce, retirement funds may or may not be marital assets, and that’s a complicated issue. But generally speaking, if you earned the retirement asset while you were married it will be marital property, and, therefore, it will be subject to division under equitable distribution. 401K accounts through a process called a QDRO – Qualified Domestic Relations Order – can be transferred tax-free to the other spouse so you don’t have to worry about tax consequences.
Fixed benefit pensions can also be transferred through a qualified domestic relations order of a different type, and can be transferred tax-free. Military pensions can also be transferred. Now, military pensions and federal pensions have their own unique aspects to them, but they can all be divided in a divorce. So, generally speaking, if the retirement funds are considered marital property, they are subject to division in a divorce.
In a divorce, retirement funds may or may not be marital assets, and that’s a complicated issue. But generally speaking, if you earned the retirement asset while you were married it will be marital property, and, therefore, it will be subject to division under equitable distribution. 401K accounts through a process called a QDRO – Qualified Domestic Relations Order – can be transferred tax-free to the other spouse so you don’t have to worry about tax consequences.
Fixed benefit pensions can also be transferred through a qualified domestic relations order of a different type, and can be transferred tax-free. Military pensions can also be transferred. Now, military pensions and federal pensions have their own unique aspects to them, but they can all be divided in a divorce. So, generally speaking, if the retirement funds are considered marital property, they are subject to division in a divorce.
In a divorce proceeding, debt is often a very big issue – who’s responsible for what debt. It’s often one of the most difficult issues to deal with, because first you have to figure out what the debt was, who incurred the debt, what the debt was incurred for? Was it incurred for a girlfriend? Was it incurred to raise the family? Who should actively be responsible for the debt?
Once you’ve determined who should be responsible for what debt, it’s very important to remember that although the court can order one party to pay your debt, the court cannot order the party who owns that debt to not hold you responsible for liable. For example, if the court orders your husband to pay off your credit card, but your husband files for bankruptcy, you’re suddenly liable for that debt. It’s issues like that that we have to address in order to protect our clients, and make sure that the issue of debt is properly taken care of in divorce.
By: Scott Shaw
In a divorce proceeding, debt is often a very big issue – who’s responsible for what debt. It’s often one of the most difficult issues to deal with, because first you have to figure out what the debt was, who incurred the debt, what the debt was incurred for? Was it incurred for a girlfriend? Was it incurred to raise the family? Who should actively be responsible for the debt?
Once you’ve determined who should be responsible for what debt, it’s very important to remember that although the court can order one party to pay your debt, the court cannot order the party who owns that debt to not hold you responsible for liable. For example, if the court orders your husband to pay off your credit card, but your husband files for bankruptcy, you’re suddenly liable for that debt. It’s issues like that that we have to address in order to protect our clients, and make sure that the issue of debt is properly taken care of in divorce.
By: Scott Shaw
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