I looked at the 1920 census record for George again and noticed he lived with his mother and step-father, James D. Spencer. That's when all the puzzle pieces clicked together. James D. Spencer was a name I remembered. (I had a lot of trouble finding his death date.)
So George married the granddaughter of his step-father! Sometimes you just need a picture, or diagram, to keep all the relationships straight:
|Relationship between George F. Ballenger, Jr., and his wife,|
A picture is worth a thousand words!