Both marriage and owning and operating a business can be financially risky.
The idea of running a business with a spouse through good and bad may
seem romantic, but the reality is sometimes more sobering. According to
one expert, married couples run almost one-third of all businesses. Unfortunately
now, almost half of all marriages end in divorce. When a married couple
running a business in Georgia decides to divorce, the future of the business
may be in doubt.
Although divorce is an emotional process, it does not have to be the end
of a business. Spouses can make the interests of the business a priority
by acting rationally. If they are likely to battle over their share of
the business and its value, hiring an independent appraiser may be a wise
move, especially if one spouse wants to buy the other spouse's business
share or if they have decide to sell the business and divide the proceeds.
A couple should also understand local laws when they divide assets involved
in a co-owned business. Valuation methods vary by state, but most states
include the concept of enterprise goodwill but do not include the idea
of personal goodwill. However, there are some states that will permit
the valuation of both.
If the spouses agree to remain in the business, they should clearly define
their responsibilities and their power to make decisions. If the spouses
cannot work together, they should be realistic and honest about their
decisions so the transition to single ownership is easier for both of them.
Dividing marital property can be complicated during divorce because of
the emotions involved. If the parties cannot find a common ground and
decide reasonably, they might suffer financial consequences that neither
wants. The need for sound legal and financial advice may be crucial during