Splitting up from your spouse is, no doubt, difficult, especially when you own a business. Splitting up a business can add even more stress and frustrations to the challenging divorce process. While your situation may be complicated, and you and your spouse may not see eye to eye on who gets what, it's crucial to understand Florida's laws for splitting a business.
What Happens to a Business in Divorce?
Florida is an equitable distribution state, which means your marital assets, including a business, are dividing fairly. This may or may not be an equal 50/50 split depending on what the judge determines is fair in the divorce.
However, only property that is considered "marital property" is divided, which is any asset that was acquired during the marriage. So if the business began during your marriage, your spouse could potentially get up to half of its value.
If the business was started before your marriage, it might be considered separate property, which is any asset, gift, or inheritance that you acquired prior to marriage. It should be noted, however, that in some cases, even if your business began before your marriage, your spouse may still be entitled to some portion of it.
This largely depends on the following factors:
- The business increased in value during the marriage.
- Your spouse contributed time or money to the business during your marriage.
Divorces involving financial matters and businesses can be extremely complicated. There are several variables that should be considered in these cases, making it crucial to consult with a skilled Coconut Creek divorce attorney that can thoroughly examine your business assets and valuation to determine the best way to approach a settlement with your spouse.
The Importance of Valuation of a Business
Another important thing to do when splitting a business in a divorce is determining the value of the business. To do this, you should get a professional evaluation done from a certified business valuator. Your Florida divorce attorney can assist you with making sure you have an accredited business valuator.
After the business has been assessed and valued, it should be presented to the court. Several factors will be examined to determine how to divide the business. This can include:
- What are future business earnings?
- What is the liquidation value?
- How many assets does the business have?
- Are there any potential losses for the business?
Considering Divorce? Contact a Coconut Creek Divorce Lawyer For Help
If you feel frustrated, confused, and unsure of how to handle the business aspects of your divorce, our team is here to help. Our Coconut Creek divorce lawyers will guide you through the process and help you every step of the way.
Contact The Law Offices of Jonny Kousa, P.L. today at (954) 626-8071 to schedule a free consultation with our team.