A Georgia court can take property out of a spouse’s hands and put it under a court-appointed receiver during a divorce, but it takes real evidence of wrongdoing to get one.
What a Receiver Does
A receiver is a neutral person the court appoints to take custody of and manage property while a case is pending. Georgia’s receivership statutes begin at OCGA 9-8-1, and OCGA 9-8-4 says that the power be used prudently and cautiously and, except in clear and urgent cases, not at all. In a divorce, one is sought when a spouse is selling, concealing, wasting, or mismanaging property the other has a claim against.
Suspicion Is Not Enough
In Frankel v. Frankel, 212 Ga. 643 (1956), a wife alleged her husband and several relatives planned to liquidate his properties and move the proceeds beyond the reach of any alimony judgment. The trial court appointed two temporary receivers.
The Georgia Supreme Court reversed. There was “no evidence showing or tending to show that the defendant is selling, concealing, wasting, mismanaging, or making any effort to dispose of or encumber any part of his holdings or has any intention to do so,” and so no clear and urgent necessity for a receiver was shown.
What Does Justify One
Warner v. Warner, 237 Ga. 462 (1976), came out the other way. A receiver was appointed over a professional building the husband jointly owned and managed. The trial court was authorized to find he had failed to distribute the profits, stopped making mortgage payments, urged the mortgage holder to foreclose, mixed the building’s funds with his own, and deposited receipts into an account under a fictitious name. The Supreme Court found no abuse of discretion.
A receiver follows evidence of what a spouse has already done, not a fear of what a spouse might do.
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This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!