Options for a Dealing with a Business in Divorce

A business that is owned by both people may be the most valuable and complex asset some Georgia couples have to deal with in a divorce. Their choices are to keep or sell the business, but there could be other factors that affect the decision.

For example, one person may want to keep running the company and the other may not. Ideally, one spouse would be able to buy out the other. However, that person may not have the money to purchase the spouse’s share outright. A payment plan may work for some people, but it may be too burdensome financially in some cases.

Another possibility might be selling the company. The couple may have an ideal price in mind, but they may not always be able to hold out for the profit they want. They should draw up an agreement for the terms on which they will sell it and should be in agreement on the price range they find acceptable. There may also be circumstances in which the couple will decide to keep the business and continue running it. They both may be so valuable to the company that one cannot run it without the other. This usually requires the ability to cooperate despite the divorce. The couple may also agree to some restructuring.

Like many other elements of the divorce process, the question of what to do about the business may have a strong emotional component to it as well. It is important for people to try to set aside these emotions during divorce negotiations because they can lead to poor decisions. Otherwise, some people may fight to keep an asset they cannot afford, such as a home, for sentimental reasons, or they might cause the process to last longer than it should because they are angry about the situation.

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