Dividing a Business in a Georgia Divorce

When a business is part of a divorce, two questions come first: is the business marital property, and what is it worth? Dividing a business in divorce rarely means splitting the company itself. Instead, one spouse usually keeps the business, and the other receives a buyout payment or other assets of similar value.

Marital or separate? Georgia divides marital property equitably, which means fairly but not always equally. A business started during the marriage is generally marital property. A business one spouse owned before the marriage, or received as a gift or inheritance, generally starts out as separate property. However, if the business grew in value during the marriage because of either spouse’s efforts, that increase can be treated as marital property.

Professional practices. Medical, dental, chiropractic, accounting, and law practices can usually be owned only by the licensed professional. Even so, the value of the practice can still be part of the marital estate. In that case, the licensed spouse usually keeps the practice, and the other spouse receives a share of its value in another form.

Family farms and real estate businesses. Land, livestock, and equipment often have mixed histories. For example, part of a farm may be inherited while improvements were paid for with marital income. As a result, tracing where the money came from is often the key issue.