How To Deal With Business Assets in Property Division

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Georgia is an equitable distribution state for divorce cases, which means that marital property in Georgia, Georgia, will be divided equally in the event of divorce. It should be noted that "equally" does not always mean the same amount. The result of equitable distribution is presumed to be fair between divorcing individuals.

Business assets are also subject to property division if they are considered marital property. However, if divorcing spouses drafted a prenuptial agreement prior to marriage, which clearly states that the business is the separate property of one spouse, it is not likely to be subject to division in a divorce.

So much more is at stake when dealing with business assets. The divorce can affect the operation of the business, especially if divorcing individuals are partners. For large companies, stockholders often fear a sudden change in regime as part of a divorce settlement will adversely affect company profits.

Valuation of the business plays an important role if division is inevitable. One of the best practices for business owners is to perform regular valuation. During divorce, each party will perform their own valuation of the business. Without fair valuation, the divorce may be subject to a lengthy delay while business experts battle to have their valuations upheld by the court.

If the couple drafted a prenuptial or a post-nuptial agreement, the judge can honor what is written in the agreement, especially if it discusses how business assets will be divided during divorce. Prenuptial and post-nuptial agreements can minimize the effects of the divorce on the business, depending on their construction and content.

Property division can be simple or complex, depending on the property and assets involved. For best results, divorcing spouses should seek help from forensic accountant experts if they suspect assets have been hidden. A Cobb County, Georgia, legal expert can provide advice to protect a divorcing partner's best interests.