The Siemon Law Firm
Honest Answers.
View Practice Areas

When a family-owned business is central in a divorce proceeding

When a family-owned business is central in a divorce proceeding

In some Georgia divorces, an added element of concern features that is not the case in the majority of divorces. That is especially true in a high-asset divorce -- but also true in other divorces as well -- involving a family-owned business.

A number of questions can arise pursuant to divorce negotiation as to what will become of a family business. They include these:

  • Typically, will it be sold?
  • How will property valuation be determined?
  • What part of a business is separate property? Marital property?

Sound advice for any divorcing person with a family business in play is to consult with an experienced family law attorney commanding proven results in high-asset divorce matters, especially those where family-operated businesses are concerned.

A rule of thumb that is often stated is that a person who began a business prior to marriage will generally retain that enterprise following a divorce. If the other spouse is entitled to any of the increase in value in the business that accrued during the marriage, he or she will receive it through the assignment of a different asset that is equal in value.

There are many questions and considerations that a high-asset divorce attorney will help a client focus upon concerning a business. Did a spouse who married the business originator contribute materially to the business during the marriage? Was a premarital agreement executed prior to marriage that explicitly discussed and set forth understandings regarding the business in the event of a divorce? If not, did the parties execute a postnuptial contract regarding that subject?

Again, how a family-owned business will ultimately be valuated and divided will depend on many factors and is a singular matter in every case. Consultation with experienced legal counsel is a good first step toward understanding the process and protecting legal interests.

Source: News & Observer, "Ask the experts: Prepare for marriage, divorce so they don't tear business apart," Jessaca Giglio, April 2, 2013

No Comments

Leave a comment
Comment Information
Contact our Georgia Family Law Firm by calling 866-497-5134 or by completing this contact form. An attorney will respond within 24 business hours.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Siemon Law Firm
347 Dahlonega Street, Building 100
Cumming, GA 30040

Toll Free: 866-497-5134
Phone: 770-574-4126
Fax: 678-341-9749
Cumming Law Office Map

The Siemon Law Firm
4555 Mansell Road, Suite 300
Alpharetta, GA 30022

Toll Free: 866-497-5134
Phone: 770-203-2831
Fax: 678-341-9749
Alpharetta Law Office Map

The Siemon Law Firm
3400 Peachtree Rd NE, Suite 555
Atlanta, GA 30326

Toll Free: 866-497-5134
Phone: 770-727-8251
Fax: 678-341-9749
Atlanta Law Office Map

The Siemon Law Firm
One Parkway Center
1850 Parkway Place
Suite 715
Marietta, GA 30067

Phone: 770-203-1483
Fax: 678-341-9749
Marietta Law Office Map