May 29 , 2025
Divorce is often one of the most emotionally and financially complex events in a person’s life. When one or both spouses own a business, the process becomes even more complicated. Accurately valuing that business is essential for a fair and equitable division of assets. For couples navigating a divorce in Georgia, particularly those with ownership interests in a company- a thorough, defensible business valuation isn't just helpful, it’s essential.
Whether you're a business owner wondering, "What happens to my business in a divorce in Atlanta?" or a family law attorney supporting a high-net-worth client, understanding the role of valuation is essential.
In Georgia, marital property includes assets acquired during the marriage, including businesses that were started or significantly grown during that time. Even if a business was founded before the marriage, any appreciation in its value during the marriage may be considered a marital asset, subject to equitable distribution.
This is where a professional, independent valuation becomes essential. Without one, both parties are essentially guessing the value of one of their biggest shared assets. This opens the door to disputes, mistrust, and, often, prolonged litigation.
Estimates or internal bookkeeping just aren’t dependable in court. Courts and attorneys require credible, well-documented valuations backed by accepted methodologies. Certified Valuation Analysts in Atlanta are often brought in to provide objective assessments based on:
This professional approach is especially vital in cases involving closely held businesses or small business partnerships, where public market comparisons are unavailable.
A business valuation influences every major financial aspect of the divorce. Here’s how:
1. Determining Equitable Division
Georgia is an equitable distribution state, which means the goal is a fair, not necessarily equal, split. A small business appraisal in Atlanta can reveal the true market value of the company, allowing both sides to negotiate from an informed position.
2. Setting the Stage for Buyouts
Once the value is known, one spouse may choose to buy out the other. This is common in cases where only one spouse actively runs the business. A proper valuation prevents disputes about whether the buyout amount is fair. In fact, our firm has been involved in many shareholder buyouts in Atlanta, where this exact scenario played out successfully with minimal conflict.
3. Avoiding Double Dipping
In some divorces, a business owner is at risk of "double dipping" where the same income is used both to calculate spousal support and to determine business value. A qualified valuation expert knows how to separate these issues to ensure a fair outcome.
4. Supporting Other Agreements
An accurate valuation can inform related legal instruments, such as buy and sell agreements in Atlanta, particularly if multiple owners or family members are involved. It can also influence decisions about business exit planning, succession, or even corporate acquisition consulting in Atlanta if a sale is on the horizon.
Valuing a business during a divorce takes extra care and close attention to detail. Some of the most common challenges include:
These complications are why it is essential to work with a firm that specializes in business valuation in Atlanta and understands the nuances of divorce cases.
You may need a business valuation in a divorce if:
At Burns Valuation Consulting, we specialize in providing expert, defensible valuations for individuals, attorneys, and businesses across Georgia. Our team includes Certified Valuation Analysts in Atlanta with deep experience handling valuations in high-conflict divorce cases, estate matters, and corporate transactions.
We take a holistic, impartial approach, considering not just financial data but also operational and market factors that influence business value. Whether you're facing a complex litigation or a collaborative divorce process, our analysis is built to stand up in negotiations and, if needed, in court.
Dividing a business in divorce without a professional valuation is like trying to sell a home without knowing its market value. It opens the door to conflict, confusion, and potential injustice. Whether you’re the business owner or the non-owner spouse, a sound, impartial valuation protects your interests and helps lay the foundation for a more efficient and fair settlement.
If you're navigating the complexities of divorce and own a business, don't leave the outcome to chance. Contact Burns Valuation Consulting to schedule a confidential consultation with a trusted valuation expert.
