How To Deal With Business Assets in Property Division
Posted on Mar 20, 2014 12:00am PDT
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
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.