How can splitting a business affect alimony?

Many Georgia residents are proud business owners. When their marriages fail, their companies are often considered their most valuable marital assets. How their companies -- or at least the value of their companies -- are split can affect other areas of their divorces, such as alimony payments.

Divorce law is written in a way to help each spouse walk away from a marriage with a fairly equal share of assets. In some cases, one spouse may find that he or she requires financial support in post-divorce life. These individuals may find alimony difficult to achieve, though, if they are insistent upon receiving a share of their spouse's business.

Some states do not allow an alimony-requesting spouse to double dip. This means that he or she cannot receive alimony based on his or her spouse's future income and a share of that individual's business. Being awarded both may be considered inequitable and could hurt the business in the long run.

At the end of the day, it all comes down to how a business is valued and how it is treated as part of the marital estate. With the assistance of legal counsel, Georgia residents can walk away from their marriages with a fair share of assets and -- for those who qualify for it -- alimony. Reaching agreeable terms may take time and, in some cases, litigation may prove necessary, but with help, achieving a fair and balanced divorce settlement -- one that does minimal damage to one's business and financial stability -- can be a reality.

Source: wealthmanagement.com, "Three Pressing Issues For Business Owners Going Through a Divorce", Mark S. Gottlieb, Jan. 30, 2018

No Comments

Leave a comment
Comment Information