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Divorce and its impact on a business

by | Nov 21, 2022 | Divorce

Divorce does more than affect people’s personal lives. Dissolving a marriage could have an impact on one or both spouses’ business ventures. Someone who owns a Georgia company cannot ignore the responsibilities associated with managing the enterprise, and knowing how to do so during divorce proceedings seems essential to keep the venture running.

Business concerns during a divorce

A divorce is a serious process and requires both spouses’ attention. The process might cause distractions for those running a business, which could create enormous problems for the company. Some may consider appointing someone to run the business until the divorce concludes, if possible.

Ownership issues add to the complexities. One spouse might be the business’s sole owner, and the company could be an asset during divorce settlement talks. The other spouse might be entitled to a share of the company. Since Georgia is an equitable distribution state, there is no automatic 50/50 asset division. Instead, the court determines what is fair based on each party’s contributions.

If the two spouses proceed with a divorce trial to determine distributions, the process could take a long time and cost significant money before a judge renders a decision. Negotiating an equitable settlement that the court approves of might be better in some situations.

Negotiating a divorce settlement

Georgia divorce settlement negotiations do not need to be contentious. Both parties could agree on reasonable trade-offs that may move to a resolution that helps preserve the business. For example, one spouse may keep the business upon agreeing to give the other spouse the family home and pay alimony.

Those who cannot overcome stumbling blocks during the negotiations could go through mediation. Such steps might lead to a more desirable outcome than a trial.