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Dividing Family Business | Atlanta Divorce Laws

Scott Shaw | 637 Views | 11/06/2015

Family Business During Divorce

An equitable division of property in a divorce in the state of Georgia, one of the most important complicated issues is often if there is a family business. Can you keep the business running? How do you divide the value of the business?  And rest assured, a family business is a marital asset that can be divided, and it’s one of the most contested issues you will come into. Sometimes it’s as simple as just getting an appraiser and putting a value on it.  Of course how you value the business, that’s another issue. And sometimes you can be creative.

Example Litigation

For example, we had a case where my client inherited the business when they got married. It was a 20-year marriage, so 20 years ago.   It was her family’s business. And her husband actually was president of the business for 20 years, and he demanded a certain amount of money to be paid for his share of the business that would have bankrupted the family business that she inherited from her parents, that her parents inherited from their parents.

So we got creative, and we had the business appraised going back from 20 years ago, the value at the time she inherited it and was married, and we adjusted it for the rate of inflation. And sure enough he still mismanaged the business, that over 20 years the business adjusted for inflation only increased by $25,000.

Hire a Lawyer to Assist in Your Divorce

So that’s what we offered him, and the judge agreed with us. So on the right case you can be creative, and you can save the family business. But in general, if you have the family business to deal with, you have a lot of complicated issues that have to be addressed, and you need someone who knows what they’re doing to address them. And at Shaw Law Firm we are happy to take your telephone calls or inquiries. Thank you.

By: Scott Shaw

Dividing Family Business | Atlanta Divorce Laws

Family Business During Divorce

An equitable division of property in a divorce in the state of Georgia, one of the most important complicated issues is often if there is a family business. Can you keep the business running? How do you divide the value of the business?  And rest assured, a family business is a marital asset that can be divided, and it’s one of the most contested issues you will come into. Sometimes it’s as simple as just getting an appraiser and putting a value on it.  Of course how you value the business, that’s another issue. And sometimes you can be creative.

Example Litigation

For example, we had a case where my client inherited the business when they got married. It was a 20-year marriage, so 20 years ago.   It was her family’s business. And her husband actually was president of the business for 20 years, and he demanded a certain amount of money to be paid for his share of the business that would have bankrupted the family business that she inherited from her parents, that her parents inherited from their parents.

So we got creative, and we had the business appraised going back from 20 years ago, the value at the time she inherited it and was married, and we adjusted it for the rate of inflation. And sure enough he still mismanaged the business, that over 20 years the business adjusted for inflation only increased by $25,000.

Hire a Lawyer to Assist in Your Divorce

So that’s what we offered him, and the judge agreed with us. So on the right case you can be creative, and you can save the family business. But in general, if you have the family business to deal with, you have a lot of complicated issues that have to be addressed, and you need someone who knows what they’re doing to address them. And at Shaw Law Firm we are happy to take your telephone calls or inquiries. Thank you.

By: Scott Shaw