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Divorce and your mortgage in Georgia

Divorce and Your Mortgage in Georgia The equitable-distribution buyout, the transfer tax you skip, and the intangibles tax you do not

In a Georgia divorce, the spouse keeping the home buys out the other's share by refinancing. Georgia divides marital property equitably, fair but not automatically equal. Two Georgia points matter: the deed transferring the home between spouses in the divorce is exempt from the state transfer tax, but the new buyout mortgage still owes Georgia's intangible recording tax, with a 2025 rule change worth knowing. This is financing information, not legal or tax advice.

By Niko Kramer, Mortgage Loan Officer, Satori Mortgage, NMLS #2180891 Certified Divorce Lending Professional (CDLP)

Last updated: June 18, 2026

Talk to Niko Call (512) 270-2835

This is the Georgia view of the divorce-and-mortgage picture. For the national mechanics, start with the Divorce and Your Mortgage pillar, and see my Georgia mortgage guide.

Niko Kramer, Mortgage Loan Officer, NMLS #2180891, Certified Divorce Lending Professional
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How does a divorce home buyout work in Georgia?

Georgia divides marital property equitably, fairly rather than automatically in half. To keep the home, one spouse usually buys out the other's awarded share of the equity by refinancing into a new loan that pays off the old mortgage and funds the buyout. The division follows your settlement or the court, which your divorce attorney handles, not the lender.

More: How a divorce equity buyout is financed.

Does Georgia split everything 50/50?

No. Georgia is an equitable-distribution state, so marital property is divided fairly after the relevant factors, not automatically equally, and Georgia is not a community-property state. That contrasts with Texas, California, and Washington, which start from co-ownership. Your divorce attorney handles the actual division, not the lender.

Will I owe transfer tax when I buy out my spouse in Georgia?

No, on the deed. A transfer of real estate between spouses in connection with a divorce is exempt from Georgia's transfer tax under O.C.G.A. 48-6-2, as long as the deed references the decree and the consideration is shown on the PT-61 form. The transfer tax would otherwise be about 0.1%. The exemption is for the deed, not for the new mortgage.

The transfer-tax exemption on the divorce deed

  • Georgia's real estate transfer tax is $1 for the first $1,000 of consideration plus 10 cents for each additional $100, which works out to about 0.1%, under O.C.G.A. 48-6-1. It is customarily paid by the seller or grantor and collected when the deed is recorded.
  • A transfer of real estate between a husband and wife in connection with a divorce case is exempt from the Georgia transfer tax, under O.C.G.A. 48-6-2. The deed should reference the decree or settlement agreement, and the consideration is still shown on the PT-61 transfer form. So the buyout deed itself is not subject to the transfer tax.

Informational only, not tax advice. Source: O.C.G.A. 48-6-2 (exemptions; transfer between spouses in a divorce). The exemption is for the deed; the new mortgage is covered below.

But what about Georgia's intangible recording tax?

That is the catch. Even though the divorce deed is transfer-tax exempt, the buyout refinance is a new long-term-note mortgage, so it owes Georgia's intangible recording tax of $1.50 per $500, about 0.3% of the loan, capped at $25,000, when it is recorded. A decree alone owes nothing, but the staying spouse's new loan does, so budget for it.

The intangible recording tax on the buyout refinance

  • Georgia also charges a separate intangible recording tax of $1.50 per $500 (0.3%, capped at $25,000) on a security instrument securing a long-term note when it is recorded, under O.C.G.A. 48-6-61. This is a different tax from the transfer tax and applies to the mortgage, not the deed.
  • The honest Georgia picture: the divorce deed is transfer-tax exempt, but the buyout refinance is a new long-term-note mortgage, so it does owe the 0.3% intangible recording tax when recorded. A divorce decree by itself secures no note and owes no intangibles tax, but the staying spouse's new loan does, so budget for it.

Source: O.C.G.A. 48-6-61 (intangible recording tax); Georgia Department of Revenue. Budget for this on the new loan; confirm the amount with the closing attorney and a tax advisor.

Did the 2025 rule change (HB 586) affect this?

Partly, but probably not for a buyout. HB 586, effective July 1, 2025, raised the short-term-note threshold that escapes the intangible tax from 36 to 62 months and exempts refinances by the original lender and original borrower up to the balance. A 30-year buyout refinance runs past 62 months and changes the borrower, so it generally still owes the tax. Confirm the current rule with a tax advisor.

The 2025 HB 586 change, and why it usually does not help a buyout

A 2025 law, HB 586 (effective July 1, 2025), raised the short-term-note threshold that escapes the intangible recording tax from 36 to 62 months, and it exempts a refinance by the original lender and original borrower up to the unpaid principal balance. But a standard 30-year buyout refinance runs well past 62 months, and a buyout changes the borrower to one spouse alone, often with a new lender, so it generally still owes the intangible tax.

As of 2025-07-01. Source: Georgia HB 586 (2025); O.C.G.A. 48-6-61 and 48-6-66; Georgia Department of Revenue. This is a recent, time-sensitive rule; confirm the current treatment with the Georgia Department of Revenue and a tax advisor before relying on it.

Will my property taxes go up in a Georgia divorce buyout?

Not because of a basis reset, because Georgia has no acquisition-value cap. Unlike California's Proposition 13 or Florida's Save Our Homes, Georgia assesses at market value, so there is no low basis to preserve or lose here. The standard homestead exemption is a separate thing, not an acquisition cap. Your specific assessment is the county tax commissioner's determination.

No Proposition 13 here, the honest version

Georgia has no California Proposition 13 or Florida Save Our Homes style acquisition-value cap. Property is assessed at market value, so there is no low tax basis that a divorce transfer would either preserve or reset. Georgia's standard homestead exemption exists but is not an acquisition-value cap. Property-tax specifics are for the county tax commissioner.

Source: Georgia Department of Revenue (property tax; market-value assessment). Property-tax specifics are the county tax commissioner's; confirm with a tax advisor.

Do both of us have to sign to refinance the house in Georgia?

It depends on how title is held. Georgia is a title state, so if the home is titled in one spouse's name alone, that spouse can generally refinance without the other; if it is titled jointly, both owners join. Confirm the title form before assuming, and coordinate the refinance with the timing of the divorce.

More: When to refinance: before or after the decree.

How do I qualify on one income in Georgia?

You generally have to qualify for the new loan alone, on your own income, credit, and debt-to-income. A non-occupant co-borrower, often a parent, can help you qualify when your own numbers are tight, which can matter at Atlanta-area prices. It is worth running your real numbers early, before the decree commits to a plan the financing cannot support.

More: Qualifying on one income after divorce.

Does Georgia have an owelty like Texas?

No. The owelty lien is a Texas homestead mechanism. Georgia handles a divorce buyout through the equitable-distribution division and a refinance, with the transfer-tax exemption on the deed and the intangible recording tax on the new mortgage. So the Texas owelty guidance does not apply here; in Georgia the buyout is an ordinary refinance sized to the balance plus the awarded share.

More: The Texas owelty lien (a Texas-only contrast).

Frequently asked questions

No, on the deed itself. A transfer of real estate between spouses in connection with a divorce is exempt from the Georgia transfer tax under O.C.G.A. 48-6-2, as long as the deed references the decree or settlement and the consideration is shown on the PT-61 form. The transfer tax would otherwise be about 0.1%. The exemption covers the deed, not the new buyout mortgage. Confirm the specifics with a tax advisor and the closing attorney.

Generally yes. Even though the divorce deed is transfer-tax exempt, the buyout refinance is a new long-term-note mortgage, so when it is recorded it owes Georgia's intangible recording tax of $1.50 per $500, about 0.3% of the loan amount, capped at $25,000, under O.C.G.A. 48-6-61. A divorce decree by itself secures no note and owes no intangibles tax, but the staying spouse's new loan does, so budget for it.

HB 586, effective July 1, 2025, raised the short-term-note threshold that escapes the intangible recording tax from 36 to 62 months and exempts a refinance by the original lender and original borrower up to the unpaid balance. A standard 30-year buyout refinance runs well past 62 months and changes the borrower to one spouse, often with a new lender, so it generally still owes the tax. Confirm the current treatment with the Georgia Department of Revenue and a tax advisor.

No. Georgia is an equitable-distribution state, so marital property is divided fairly after the relevant factors, not automatically equally, and Georgia is not a community-property state. That contrasts with community-property states such as Texas, California, and Washington. The actual division is decided by your settlement or the court and handled by your divorce attorney, not the lender.

Related guides

Sources

Sorting out a Georgia home in a divorce? Let's run your real numbers.

Tell me the rough equity, the buyout, and your income, and I'll tell you straight whether keeping the home is fundable on your own, with the intangible recording tax built into the cost so it is not a surprise. No pressure, no credit pull, and no push either way.

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