Divorce can be challenging, especially when you have significant assets. As a business owner, protecting your professional interests is important.
There are several ways to safeguard your business during this difficult time. Doing so ensures your company remains stable and continues operating.
Divorce laws regarding assets
In Georgia, marital property is subject to equitable distribution upon divorce. It is important to understand the details of how this works.
Equitable distribution: The court divides all marital property fairly but not necessarily equally
Marital property: This refers to all property you or your spouse obtained during the marriage
Separate property: Separate property includes any asset you acquired before getting married or via inheritance or gift during the union
When dividing property, Georgia courts typically consider any separate assets, the financial status and income of each spouse and any wrongful conduct resulting in asset dissipation.
Steps to protect your business
Ensuring you get your desired settlement involves several key steps. While it may be too late for a prenuptial agreement, a postnuptial agreement may shield your business from a divorce. Asset protection trusts, limited liability companies and limited liability partnerships can also protect your company in various ways.
Keep your company finances separate from personal finances. Maintain clear distinctions between business and personal finances. Separate finances can show that your company is not subject to division in the divorce. Thorough and accurate financial records for your business can help support your position during property division negotiations.
When you understand your legal rights, you can develop strategies to protect your interests. Safeguard your business by taking proactive steps and seeking appropriate guidance.