Dividing a business in a divorce is inevitable and will affect its operations. It’s important to know what to expect, so your business can recover afterward. This article will explain a few things you need to know about how divorce and business owners affect the situation.
Your Business Will Be Categorized
Legally, there is marital property and separate property. Marital property is everything you obtain during your marriage, while separate property is any asset you had before your marriage. That would include business.
But an otherwise separate asset can be considered marital if they are combined. For example, you and your spouse are the business owners that you started during your marriage.
Courts Determine Asset Division
Georgia isn’t a community property state. That means it doesn’t automatically consider assets obtained during the marriage as joint property. Equitable distribution will apply, which means a judge will decide who gets what.
If your business grew substantially during your marriage, your spouse would be entitled to the value that he or she has added. If it started after you were married, it would be divided evenly.
The court decides how your company will be divided based on its income, costs, and the market. Afterward, the court will decide which spouse keeps the business.
The spouse who doesn’t get the business will get equal value in other assets. This may be in the form of business alimony or another way of compensating the other spouse for their interest in the company.
Getting Legal Help from a Paulding County Divorce Attorney
A Paulding County divorce attorney will help you build a case, so you can get your assets divided fairly. With over 30 years of experience, Law Offices of William R. Pike Law, LLC specializes in family law. Rest assured that your case will be in good hands as you schedule a consultation at (678) 564-0199. Call us now!
