Skip to content
Set Up a Consultation Call 770-594-8309 / Text 678-522-4799

What is Baseline Value and How Does It Impact the Calculation of Appreciation in Valuing Property?

In the state of Georgia, property acquired by one spouse prior to the marriage is normally classified as separate property, whereas property acquired during the marriage by either or both spouses is typically seen as marital property. While this seems like a straightforward classification for the equitable division of property in a Georgia divorce, the reality is that property division is rarely a clear issue.

More often than not, property division is complex, and the parties may have distinctly different views of what constitutes marital property. This can be a particular issue where one spouse brings property to the marriage, but the property’s value increases during the marriage. This increase in value, or appreciation, may or may not be attributable to the efforts of one or both spouses and/or market forces. These are factors that the court will consider in deciding if and how to divide the appreciation of the property between the parties during a Georgia divorce.

The baseline value of a property generally refers to the value of the property at the time that one spouse brought it into the marriage. This might be a purchase price, an appraisal value, or an estimate, depending on the facts and circumstances surrounding the property, including the timing of the property acquisition relative to the marriage date. Appreciation, on the other hand, is the difference between the baseline value of property and its present value. The increase in the value of property between the date of the parties’ marriage and the date of filing for divorce is appreciation, which a court may consider to be separate or marital property. The court’s conclusion about the nature of a piece of property may vary widely from one case to the next, as this tends to be a fact-sensitive issue.

Property division, especially to the extent that it involves premarital property and appreciation that occurred during the marriage, can be an extremely contentious and complicated issue. For more information about properly valuations in your divorce proceedings, talk to the Atlanta divorce lawyer who knows how to best represent your interests.

Contact us or call today to learn how Shaw Law can work with you to achieve the best outcome possible for you and your children.

Scott Shaw is founder and principle of Shaw Law Firm LLC, founded in 1995 and dedicated solely to divorce, family law and child custody matters that must be addressed and decided in the state of Georgia. Shaw Law Firm serves the greater Metro Atlanta area, particularly the counties of Fulton, Gwinnett, Cobb, Cherokee, Forsyth, Paulding, Henry, Fayette, Coweta, Newton, Walton, Bartow and Douglas. Schedule a consultation today at 770-594-8309.