The division of property and assets in a divorce can be a challenging process as shared possessions are split between two parties. When businesses are involved in the divorce process, it can become increasingly complex. However, there are steps that a couple can take that clearly outline what would happen to a business in the case of divorce. Those in Georgia that want to protect their business during a marriage and in the case of a divorce have a variety of resources available to them.
A prenuptial agreement can be executed prior to the marriage. In this agreement, a business owned by one party can be classified either as separate property or marital property. If designated as separate property, that party would typically remain the sole owner through the marriage and any subsequent divorce. For those already married, a postnuptial agreement could be executed and made to apply in much the same way as a prenuptial agreement.
Furthermore, an operating agreement could be made for the business if there are multiple partners involved. This serves to protect the owners if one decides to get a divorce or transfer a business share. If a business greatly increases in value during the marriage, then that change may need to be addressed in any prenuptial, postnuptial or operating agreement.
Keeping separate assets apart from marital property is crucial. Business owners in Georgia who want to define the ownership of their property have various options to protect their business investment. Although property division in a divorce can challenging, an experienced family law attorney can help ease the potential stress of this aspect of divorce.
Source: bizjournals.com, “How to protect your business in a divorce“, Patrick Yeatts, March 25, 2015