Family-owned-and-operated businesses make up 90 percent of all businesses in the United States. That is significant. It is safe to say that numerous Georgia residents are among those who have started or are a part of family-owned companies. What happens to these companies in the event of divorce?
A good chunk of married couples will file for divorce at some point during their unions. Some believe that nearly half of all marriages end in divorce. That number may be slightly exaggerated, but for the most part, it gives a fairly accurate view of how successful most marriages are.
When going through the divorce process, all shared assets are to be brought to the table for division. This may include the family business, unless proper protections were put in place before hand. Prenuptial or postnuptial agreements can help business owners protect their companies from property division. In order to do this, the documents must be carefully negotiated, include specific details regarding the division of assets and not be forced on the other party.
Without a pre- or postnuptial agreement, there are ways to handle the division of a business or buyout of a spouse in the event of divorce. This will be at a cost, however, and may hurt a company’s bottom line. Georgia residents can turn to an experienced family law attorney who will be able to assist business owners with setting up any desired protections should divorce ever enter the picture, or help achieve property division settlements that minimize any negative impacts on one’s company.
Source: njbiz.com, “How to protect your family business from a divorce“, Jennifer Millner, Nov. 14, 2017