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Take these steps to protect your business from divorce

At the time that you and your husband were building a family, you were also building a medical practice in Alpharetta. It was one of your proudest moments when you were finally able to strike out on your own. Unfortunately, while you were getting your practice off the ground, things took a turn in your marriage.

Now, you are facing divorce and you are worried about what will happen to your practice. Will it be able to survive? Will your husband take care of it? What are your options to shield it as much as possible?

Many private business owners find themselves asking these same questions when divorce looms on the horizon. There are steps you can take to protect your business to a certain extent, especially if a Georgia divorce court considers it a joint asset. Read further to find out more about what you can do to divorce-proof your business.

Get things organized

If you have not done so already, it is past time to get your practice's financial records in order. In addition, be sure you are maintaining separate bank accounts for your business and not pulling money from your household accounts to make any business-related purchases.

Pay yourself competitively

Be sure that you are paying yourself a salary that is in line with industry standards. If you are only taking a small percentage of the company's income as your wages, your husband may demand his fair share of the business when you divorce. Already making that money accessible in a family account will let your practice maintain its value.

Issue your spouse a pink slip

If your husband is working for the company in any capacity, such as handling the books or occasionally working the front desk, it is time to fire him. The more involved he is in the operations, the more leverage he has to claim that he helped you build the practice and deserves a share of its profits.

Negotiate

During the settlement process, you and your future ex will more than likely argue over who gets what. Be prepared to negotiate and hand over more of your marital property in exchange for retaining 100 percent ownership of your practice.

Get an independent valuation

When it comes time to pit your business against the other marital assets, you will need a professional to provide a valuation report. Consider getting more than one report. You will definitely want a second opinion before you agree to any report, since there are different methods of valuation. For example, one actuary might base his report on 10 or 15 years of possible future revenues while another one might base his report on current numbers.

If you are considering divorce, it is important that you take immediate steps to protect your business. In addition to the tips above, your attorney will be able to help you choose a strategy that will increase your odds of hanging on to your practice.

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At Hecht Family Law we understand that this is not only a very trying time for you, but that you want to get what you feel you deserve during the divorce process. We will always keep your end goal in mind.

Ready to rest easy tonight? Take a moment to contact Hecht Family Law. We offer free phone consultations, or you could send us an email to discuss your family law matter today.

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