High Net-Worth Divorce in Orlando and Business Ownership
Orlando is a thriving city with a strong business community. Many professionals and entrepreneurs have built successful companies that provide financial stability for their families. However, when divorce becomes a reality, business owners often make avoidable mistakes that can significantly impact their financial future.
As an Orlando high net-worth divorce Attorney, I represent both business owners and their spouses in complex divorce cases. If your divorce involves a business, you need an attorney who understands the financial and legal challenges that arise in these cases. I am Beryl Thompson-McClary, and I provide representation throughout Orange County, Florida.
If you are a business owner facing divorce or your spouse owns a business, call me at 1-888-640-2999 to schedule a consultation. Together, we will review your situation and develop a legal strategy that protects your interests.
Common Mistakes Business Owners Make in Divorce
Business owners going through divorce often underestimate the impact of their decisions. Whether they are the spouse trying to protect the business or the spouse seeking a fair share, making the wrong moves can lead to costly outcomes. Here are some of the most common mistakes:
1. Failing to Separate Personal and Business Finances
Mixing personal and business finances makes it difficult to determine what portion of a business is considered marital property. If marital funds were used to support the company, the business may be subject to equitable distribution under Florida Statutes §61.075. Keeping separate financial records can prevent unnecessary complications.
2. Undervaluing or Overvaluing the Business
Business owners sometimes try to undervalue their company to reduce the amount owed to their spouse. Conversely, a spouse may claim the business is worth more than it is to receive a larger share. Florida courts require a fair and accurate business valuation during the divorce process. Relying on professional valuations is critical to avoiding disputes.
3. Trying to Hide Business Assets
Attempting to conceal business assets is a serious mistake. Courts have access to forensic accountants who analyze financial records for discrepancies. If a judge determines that assets were intentionally hidden, the court may impose financial penalties and award a larger portion of marital property to the other spouse.
4. Ignoring the Impact of Divorce on Business Operations
Divorce can be disruptive to business operations, especially if both spouses are involved in the company. Business owners should take steps to ensure daily operations continue smoothly, whether through restructuring, buying out a spouse, or negotiating a fair division of assets.
5. Not Having a Prenuptial or Postnuptial Agreement
A prenuptial or postnuptial agreement can clarify whether a business is considered marital or non-marital property. Without one, a spouse may have a claim to part of the business if it increased in value during the marriage. Business owners should consider these agreements as part of their long-term asset protection strategy.
6. Assuming a Spouse Has No Claim to the Business
Many business owners believe that if they started the company before marriage, their spouse has no right to it. However, Florida law allows for the division of a business’s increased value if marital funds or efforts contributed to its growth. It is essential to assess how the business evolved during the marriage.
7. Misunderstanding Equitable Distribution in Florida
Florida follows equitable distribution, meaning property is divided fairly but not necessarily equally. A business owner may need to compensate their spouse with other assets or structured payments. Understanding how courts approach property division helps in negotiating a favorable settlement.
8. Not Planning for Tax Consequences
Transferring business interests or assets can have significant tax implications. Selling business shares, liquidating assets, or paying out a spouse may result in unexpected tax liabilities. Consulting with financial professionals is necessary to minimize tax exposure.
9. Ignoring the Role of a Forensic Accountant
A forensic accountant can evaluate business income, cash flow, and potential hidden assets. Business owners and their spouses should work with financial professionals to ensure all financial matters are accurately assessed.
10. Not Seeking Legal Representation From a High Net-Worth Divorce Attorney in Orlando
Divorce cases involving businesses require legal counsel familiar with Florida’s business and divorce laws. Failing to work with an attorney experienced in high-asset divorce cases can result in losing control of a business or receiving an unfair settlement.
Florida Statutes and Business Ownership in Divorce
Under Florida Statutes §61.075, assets acquired during the marriage are considered marital property and subject to equitable distribution. The following factors influence whether a business remains intact or is divided:
- How and when the business was founded
- The role each spouse played in growing the business
- Whether marital funds were used to support the business
- The business’s increase in value during the marriage
- The financial needs and contributions of both spouses
Courts aim to ensure fairness, but business owners must take the right steps to protect their company from unnecessary disruption.
FAQs About Business Ownership in Florida Divorces
How is a business divided in a Florida divorce?
Florida courts divide assets based on equitable distribution, meaning a business may not be split equally. Instead, a judge evaluates factors such as when the business was founded, its growth during the marriage, and the financial contributions of each spouse.
Can I keep my business after a divorce in Florida?
Yes, but it often requires buying out your spouse’s interest or compensating them with other assets. Courts may also allow structured payments over time to retain ownership.
What happens if my spouse tries to claim part of my business?
If your spouse contributed financially or through indirect support (e.g., staying home to support your career), they may have a legitimate claim to part of the business’s value. A legal strategy can help minimize disruptions while ensuring a fair resolution.
Can my spouse take over my business after our divorce?
If both spouses were involved in the business, courts may consider a buyout, co-ownership arrangement, or sale of the business. If only one spouse was involved, the other is more likely to receive financial compensation rather than ownership.
Do I need a forensic accountant for my divorce?
Forensic accountants help uncover hidden assets, evaluate business income, and ensure accurate valuations. Their role is crucial when business owners suspect financial discrepancies in divorce proceedings.
Can my spouse force me to sell my business?
Courts rarely require a business owner to sell their company unless it is the only way to ensure fair asset division. Alternative options, such as structured settlements or buyouts, are often used.
Should I update my estate plan after my divorce?
Yes, after a divorce, you should revise your estate plan, business succession plan, and beneficiary designations to reflect your new financial situation.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
If your divorce involves a business, it is critical to work with an attorney who understands Florida’s complex property division laws. Whether you are the business owner or the spouse seeking a fair share, I am here to provide the legal representation you need. Call me at 1-888-640-2999 to schedule a consultation and discuss your case.
Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
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