For business owners, their own success and income is based on the success of their company. When business owners face a divorce, the process to accurately assess the business’s value can be complex. The process can also have high stakes, with business owners understandably worried about losing some of what they have worked so hard to create. What should divorcing business owners in Georgia know?
How businesses are divided in a divorce
The first step in the process is to calculate the value of the business, which will generally involve the use of a business evaluation. During this process, an expert will use one of a few different methods. At a basic level, the valuation will be based on the assets of the company, the income generated by it or a market analysis.
After the value of the business is determined, the divorcing couple and their attorneys will need to determine whether any portion of the business is non-marital. This could be due to one spouse starting the business before the marriage. Then, the divorcing couple will need to determine whether one spouse will continue to run the business, whether they will continue running it together or if another option makes the most sense. If one keeps it for themselves, that spouse will likely need to buy out the other one, which can be done in a variety of ways as well.
They are many people in Georgia who own businesses. In a divorce, determining how to most effectively divide a business can be one of the most difficult parts of the legal process. An experienced attorney can help guide business owners from the start to protect their interests.