The Small Business Administration states that the bulk of businesses in the United States are family-owned. Specifically, the number is close to 90 percent. Although running a family-owned business can bring many advantages, a high-asset divorce can prove devastating and costly if a plan was never implemented to deal with the potentiality that a family business might become a focal point in a dissolution proceeding.
For married business owners, the family business is more than likely the biggest asset in the marriage. It is also a materially significant asset that is often not easy to liquidate. This means that, even in the event that a business can be sold, it might very possibly suffer a significant loss in doing so.
Although it may be possible for some couples to continue working together after a divorce, this is not often the ideal situation. In order to protect a potential breakdown of the business, it is often suggested by experts that both parties try to compromise and remember to separate business matters from personal matters.
During the divorce proceedings, couples often benefit by hiring a business appraiser to resolve any disagreements concerning the value of the business. Couples are often advised not to make any significant changes to the business during the divorce, so as not to raise concerns with the court.
In Georgia, divorce that involves a family-owned business and its various considerations — which can centrally include property valuation, ownership, previous contracts and a host of other matters — can be complex and time-consuming. An experienced high-asset divorce attorney can answer questions and provide diligent representation in any property-related divorce matter.
Related Resource: Forbes, “Divorce Doesn’t Have to Kill Your Family Business” Sept. 2, 2011