Business divorce is a term that refers to divorces that involve a business that both spouses own or that one spouse runs alone. One of the primary concerns of a solo business owner is whether the other spouse has a right to the business in divorce or not. Sometimes, spouses who have helped support the start of a business want to see the reward of doing so. Other times, a business that was already established may have little to do with the other spouse.
If you have not yet started divorce proceedings, then there are some ways you can help make your business divorce-proof. For example, did you know that you can place your business in your prenuptial or postnuptial agreement and establish what happens in the event of a divorce?
Georgia is an equitable-distribution state, which means that you and your spouse will split your assets equitably, not necessarily equally. While some people share the responsibilities of a marriage, others find that distributing their assets unevenly is more appropriate. In that case, there’s a good chance you could argue for your business to remain your own. On the other hand, if you want to leave your business with your spouse, then that might be a possibility also.
You and your spouse have the potential to work out how to divide your business or split your assets on your own or with the help of mediation, arbitration or a judge. It’s a good idea to look into your options carefully before you move forward with negotiations that could threaten your business.