Orlando Business Assets & Divorce Attorney
In a Florida divorce, all marital assets are split equitably. This includes businesses. If you started a business during your marriage, then your spouse is likely entitled to a percentage of it, even if you don’t think they helped you with your business at all.
In Florida, the only way your spouse may get no portion of the business at all is if it is a non-marital asset (which means you started the business before the marriage) or if there is a prenuptial or postnuptial agreement in place explicitly stating that your spouse is to receive no part of the business in a divorce.
However, businesses tend to have a marital component involved. It’s highly likely that the spouse helped with the business to some degree or even funded it with their money.
Therefore, in most cases, businesses in a Florida divorce are subject to split. Get help from Orlando business divorce attorney Steve W. Marsee, P.A. Attorney at Law.
Determining the value of a business is no easy task. Values go up and down over the years, and experts will be needed to determine your assets, income, and profits. Your lawyer may hire a certified public accountant or other financial expert to look over your business’ financial records to give it a fair evaluation.
But that’s not all. Courts also need to determine the value of “goodwill,” which is defined as the advantage or benefit a business has beyond its assets. However, goodwill must exist separate from each person’s reputation. It is not the same as “personal goodwill,” which is a spouse’s certain skill or reputation and is not a marital asset.
Dividing a Business
A business can be divided in three ways in a divorce:
- Buy out. If there are sufficient funds, then the main owner can buy out the other spouse. This allows the primary owner to keep running the business but without their ex-spouse.
- Co-own. If there is not enough money to buy out a spouse, and the couple is still amicable toward each other, then the two may continue to co-own the business. However, given that the two are divorcing, there is likely to be some contention, which means this is not always the best option.
- If neither spouse wants to continue with the business after the divorce, then there is the option to sell it and split the proceeds. However, finding the right buyer can be time-consuming and cause delays to the divorce process, so this is the best option only in limited circumstances.
Contact Us Today
Splitting a business in a divorce is no easy task. There are valuations to consider, as well as factors such as your spouse’s level of involvement.
Orlando business assets & divorce attorney Steve W. Marsee, P.A. Attorney at Law can help you understand the implications involved in splitting your business in a divorce. Schedule a consultation with our office to learn more. Fill out the online form or call 407-521-7171.