For individuals who own businesses, concerns about the fate of their entrepreneurial endeavors may add an extra layer of stress to divorce.
Georiga courts consider different factors that influence whether a person gets to retain their business.
Assessing business ownership
First and foremost, the court will assess the extent of each spouse’s involvement in the business. Active participation in the day-to-day operations and decision-making can weigh significantly in favor of the individual seeking to retain the business. On the other hand, limited involvement may lessen the chances of maintaining ownership.
Financial contributions matter
Financial contributions to the business during the marriage also play a pivotal role in the court’s decision. Contributions can take various forms, such as direct investments, loans or even dedicating personal assets to the business. The court may consider these financial inputs when determining the rightful owner of the business.
Valuing the business
Accurate valuation of the business becomes an important aspect of the divorce proceedings. The court will examine the overall worth of the business, considering factors like revenue, assets and liabilities. A thorough evaluation ensures a fair distribution of marital assets, including the business.
The business’s future viability is another key consideration. If one spouse demonstrates the ability to sustain and grow the business independently, it may sway the court’s decision in their favor. Demonstrating a solid business plan and a clear path forward can strengthen the case for retaining ownership.
As the owner of one of the 1.2 million small businesses in Georgia, you want to safeguard it professionally and personally. Understanding several factors can help individuals navigate the complexities of divorce while striving to maintain their entrepreneurial endeavors.