As an entrepreneur, your business isn’t just how you make a living—it’s a part of who you are. It is a testament to all of the years you’ve spent taking risks, putting in long hours, and chasing a dream. When you’re going through a divorce, however, that dream may be at risk.
In Georgia, where marital property is divided based on what’s fair rather than a strict 50/50 split, your business could be considered marital property if it was started or significantly grown during your marriage. Protecting what you’ve built takes careful planning, smart strategies, and an understanding of the law.
Fortunately, you’re not alone in this battle. At Hobson & Hobson, P.C., our Georgia divorce attorneys are here to help you protect your business and your future. We know that entrepreneurs risk losing a lot when they’re going through a divorce. Call our office at 770-284-6153 or fill out our online contact form, and our divorce attorneys will help.
How Divorce Can Impact Your Business
A divorce can affect your business in several ways, particularly if your spouse is entitled to a share. This can result in financial strain or even the forced sale of your business to divide its value.
The key risks include:
- Valuation and Division: The business must be valued to determine its worth. If it’s considered marital property, your spouse may be entitled to a portion of its value.
- Control and Ownership: If you and your spouse co-own the business, it may be difficult to determine who retails control. Disagreements and disputes often arise over business ownership. d
- Financial Disruption: Paying out your spouse’s share of the business, either through cash or other assets, can strain your finances and impact operations.
Start with Classification: Is Your Business Marital Property?
In Georgia, the first question is whether your business is classified as marital or separate property.
- Separate Property: If your business was started before your marriage and hasn’t been commingled with marital funds, it may remain your separate property.
- Marital Property: If your business was started or grew significantly during the marriage, or if marital funds were used for operations or investments, it may be subject to division.
Even if you started your business before marriage, the portion of its growth that occurred during the marriage may still be considered marital property. For example, if you and your spouse used joint income to hire employees or purchase equipment, those contributions could give them a claim to part of the business’s value.
Valuation: Determining Your Business’s Worth
Once it’s clear your business is part of the marital estate, the next step is valuation. How much is your business worth? Getting the right answer is really important if you want to keep the business after the divorce is settled.
If your business is valued too high, you could end up giving away more money or other assets than you should just to keep it. On the other hand, if it’s valued too low, your spouse might challenge the numbers, leading to more arguments and delays.
Your divorce lawyer in Georgia will work with a business valuation expert to look at everything—your business’s profits, market trends, and even future growth—to figure out its real value. With their help, you can avoid costly mistakes and work out a fair deal, making it easier to stay in control of the business you’ve worked so hard to build.
Negotiation Strategies to Retain Ownership
In most cases, entrepreneurs want to retain full ownership and control of their business after divorce. Your attorney might use several different strategies to achieve that goal:
- Buy Out Your Spouse’s Share
One of the most common solutions is to negotiate a buyout, where you compensate your spouse for their share of the business with other marital assets. For example, you might offer your spouse a larger share of retirement accounts, real estate, or other valuable assets in exchange for keeping the business. - Structured Payments
If a lump-sum buyout isn’t financially possible, you might negotiate a structured payment over time. This allows you to retain ownership without straining your business’s cash flow. - Dividing Other Assets
Be strategic about how other marital assets are divided. Offering high-value items that are less critical to your financial future—like a vacation home or luxury car—can help you protect your business without significant sacrifice. - Consider Mediation
Resolving disputes through mediation, rather than litigation, can lead to more flexible and creative solutions. Mediators work to find common ground and help both parties reach an agreement that feels fair.
Contact Our Georgia Divorce Lawyers for Entrepreneurs
Your business is your legacy, and you’ve worked too hard to let a divorce put it at risk. Don’t leave your future to chance. At Hobson & Hobson, P.C., we understand how much your business means to you and the hard work it took to build it. Divorce can feel overwhelming, especially when your business and financial future are at stake. Our experienced attorneys are here to guide you through this challenging time and protect what you’ve worked so hard to achieve.
Call us today at 770-284-6153 or fill out our online contact form to schedule a confidential consultation. Let our Georgia attorneys help you safeguard your business and secure the future you deserve.
Attorney Sarah Hobson at Hobson and Hobson, P.C. are powerful advocates for those who fight for better futures for those going through divorce and custody law matters.
