When business owners divorce, the stakes are high. The end of their marriage could potentially impact the stability and future of their company. If you find yourself in this challenging situation, there are specific steps you can take to safeguard your business.
Seek legal guidance as soon as possible.
Before making any decisions, you should consider how divorce laws in Georgia could affect your business. Consider consulting with a divorce attorney who has experience dealing with business assets. They can help you determine whether your business is separate or marital property and provide personalized advice based on your unique situation.
Separate your personal finances from your business.
You should clearly separate your personal finances from those of your business. This separation helps to establish the business as an independent entity, potentially limiting your spouse’s claim to it.
Keeping clear, detailed financial records is an important part of this separation. Transparency in your business finances can help demonstrate that you have accurately accounted for all assets and liabilities. These records can be important evidence in any disputes over the valuation and division of business assets.
Consider your spouse’s role in the business.
Review the structure of your business. If your spouse has a stake in the business or plays a role in its operation, consider options such as buying out their share or compensating them with other assets. If you want to own or operate the business together, be sure that you clearly outline each person’s role in the company.
Reach out to professionals to determine the value of your business.
Obtain a professional valuation of your business. A third-party valuation provides a clear, unbiased estimate of the worth of your business. This valuation is a key factor in property division, whether or not your spouse has a claim on the company.
As a business owner, you need a sound strategy during the divorce process to protect both your personal and business interests. Thankfully, you can take steps to protect your business during this challenging time and position it for future success after your divorce.
