Alpharetta, GA was recently named the number one small city to start a business. Fueling this distinction are hundreds of entrepreneurs and business leaders who have worked tirelessly to establish successful businesses.
Starting a new business is a challenge for the most seasoned entrepreneur. It often takes years to build a viable customer base and sufficient revenues to generate a profit. When business owners are married, their spouses share in the wealth.
- bank accounts
- retirement accounts
- insurance policies
- stock portfolios
- personal and commercial property
- investments or stakes in businesses
Read on to find out how business owners can protect their assets after a divorce in Alpharetta, GA.
PRENUPTIAL AND POSTNUPTIAL AGREEMENTS
One way a business owner can protect their assets is by drafting a prenuptial or postnuptial agreement. Prenuptial agreements detail the various assets a couple owns upon entering the marriage. This helps clarify what is separate property (not accumulated during the marriage) in the event of a divorce.
If you and your spouse do not sign a prenuptial agreement, you have the option of drafting a postnuptial agreement. However, keep in mind that trial judges in Georgia have discretion whether to incorporate a postnuptial agreement into a divorce settlement. The judge will only validate a postnuptial agreement if they are convinced the contract is fair, reasonable and was not signed under duress. Therefore it is imperative that you have an experienced attorney draft and execute your postnuptial agreement to ensure the highest possibility of it being accepted and enforced by a Court of Law.
HOW CAN I PROTECT MY BUSINESS DURING A DIVORCE?
Another way a business owner can protect their assets during a divorce is to draft a business operating agreement. Business operating agreements are contracts between business partners.
Such agreements can stipulate that one partner’s interest in a business cannot be transferred without the prior approval of the other partners.
Business operating agreements can also give partners the first right of refusal to obtain any shares sold by another partner.
A knowledgeable attorney can help you draft prenuptial, postnuptial and business operating agreements that are enforceable and safeguard your assets.
Many spouses assert they have a legitimate right to share in the wealth generated by their spouse’s business because they were present during its creation. Beyond providing emotional support, they may claim to have worked at the company in an unofficial capacity without compensation.
The Law Firm of Oxendine & Sauls, LP has a team of aggressive divorce attorneys committed to protecting your financial interests. If you are a business owner who is facing divorce, don’t delay. Contact us at 770-225-2145 to schedule a consultation today.