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Can I protect my business in the divorce?

On Behalf of | Mar 6, 2020 | Uncategorized |

Georgia entrepreneurs have most likely put a lot of money and sweat into establishing their business and making a name for themselves. What many do not realize is that the result of the hard work will most likely have to be divided with one’s spouse in case a marriage of a divorce. Business can suffer as a result, as a couple’s marital problems find their way into the board room. One way to avoid such a problem is by addressing it before marital strife arises—when things are going well between the couple.

Couples can enter a pre-nuptial agreement with one another before getting married, outlining how their assets and income will be divided in case the marriage does not last. The agreement could include guidelines about which spouse would buy out the other in case of an equal partnership or if the business will be considered separate property and not be subjected to property division in the event of a divorce. It might also be possible to claim the marriage date is the initiating period for value added to the business.

Since discussions around entering into a prenuptial agreement, outlining what happens in the event of a divorce, can be a difficult topic to broach before getting married, many people avoid entering into these agreements. However, it might be possible to enter into a post-nuptial agreement covering essentially the same ground.

Other ways to protect one’s business is by formally establishing oneself as the only owner of the business and make sure that all relevant documents state it. Documents can also be drawn up that state that the business cannot be transferred to an ex in the event of a divorce and instead a cash payout be awarded to him or her.

With emotions running high during divorce proceedings, it can be easy to let them run over into the running of the business. However, remaining amicable towards one another and trying to reach a harmonious settlement can go a long way in protecting business and other interests during a divorce.