Georgia is considered an equitable division state. Unlike community property states, this does not mean that there’s always a 50/50 split of assets in a divorce. However, any assets that were obtained during the marriage will be subjected to some sort of division. This is especially worrisome to those who own their own business.
Valuation of your company
One of the most common mistakes business owners make when they divorce is waiting until the judge makes all of the decisions. For example, the company’s valuation is going to play a big role in how much keep of your business. Although you may disagree with your former spouse, the judge will still look at who has the best evidence. That is why it is important to obtain the services of a qualified valuation professional. This will also allow you to focus on other divorce matters, such as communicating with your family law attorney if you are involved in a child custody dispute.
Once all numbers have been introduced, the judge may give your former spouse a portion of the company. Fortunately, you do still have options to regain back power. The first one includes buying out your former spouse’s side of the business. In many cases, people have no interest in the business or want to spend every day with their former spouses. A buy-out simply means that you are paying them what their side of the company is worth, and thus power goes back into your hands.
Selling the business
This can be a tough pill to swallow, but the fact is that some people will not budge on any offer you provide them. This can make running the business almost impossible, and rather than losing the business’s current valuation, some former couples will decide to sell off the entire company.
Even if you cannot work with each other but selling the company is out of the question, you may remain co-owners with some strings attached. For example, if your former spouse does not want to deal with the company, you may simply offer to run it on your own and pay them a sort of profits fee each month.