Protecting Business Interests During High Net-Worth Divorce in Orlando
Orlando is home to a thriving business community, with professionals, entrepreneurs, and executives building successful companies across various industries. When a high net-worth divorce occurs, one of the most pressing concerns is what happens to a business that one or both spouses own. Whether you are a business owner looking to protect your company or a spouse seeking a fair division of marital assets, these cases require strategic legal representation.
As an Orlando high net-worth divorce Attorney, I have helped business owners and their spouses resolve complex property division disputes while ensuring financial stability. I am Beryl Thompson-McClary, and I represent clients throughout Orange County, Florida, handling intricate high-asset divorces where businesses are involved. Call 1-888-640-2999 to schedule a consultation and discuss your legal options.
Understanding Business Ownership in Florida Divorce Cases
Florida is an equitable distribution state, meaning marital assets are divided fairly but not necessarily equally. Under Florida Statutes §61.075, the court determines whether a business is a marital or non-marital asset and how it should be divided.
- Marital Property: If a business was started or acquired during the marriage, it is generally considered marital property, subject to division.
- Non-Marital Property: If a business was established before the marriage and remained separate, it may not be subject to division. However, any increase in its value during the marriage could be considered a marital asset if one spouse contributed to its growth.
The classification of a business as marital or non-marital can significantly impact whether it remains intact after divorce. Determining its status requires a careful review of financial records, ownership agreements, and contributions made by both spouses.
How Business Owners Can Protect Their Companies in Divorce
For business owners seeking to keep their companies intact, several legal strategies can help:
- Prenuptial and Postnuptial Agreements: These agreements can clarify business ownership and protect companies from being considered marital assets.
- Buyout Arrangements: One spouse may negotiate a buyout to retain full control of the business.
- Business Valuation: Obtaining an accurate valuation ensures that any division or buyout reflects the true worth of the business.
- Structuring Compensation Properly: Adjusting the way income is paid to the business owner may affect how much of the company is considered marital property.
- Operating Agreements and Trusts: Business owners who have agreements in place restricting ownership to specific individuals may be able to protect their interests.
If you own a business and want to ensure it remains intact after your divorce, I can help you explore legal options tailored to your situation.
When a Spouse May Have a Right to Business Assets
If you are the spouse of a business owner, you may have a rightful claim to part of the business’s value, particularly if:
- You contributed financially to the company.
- You played a role in its operations, even informally.
- Marital funds were used to grow the business.
- The business increased in value during the marriage.
Florida law provides that even if a business was started before marriage, any appreciation in its value during the marriage due to either spouse’s contributions may be considered marital property. This means a spouse may be entitled to part of the business’s value, even if they were not directly involved in its daily operations.
Business Valuation in Florida Divorce Cases
Before determining whether a business can stay intact, an accurate valuation is required. Florida courts rely on professional appraisals to determine a business’s fair market value. Valuation methods include:
- Income Approach: Based on projected future earnings.
- Asset Approach: Focuses on the company’s assets and liabilities.
- Market Approach: Compares the business to similar companies that have been sold.
If the business is subject to division, the valuation will impact whether one spouse can buy out the other, whether alternative assets will be exchanged, or whether the business may need to be sold.
Can a Spouse Be Forced to Sell Their Business in a Florida Divorce?
In some cases, a business owner may be required to sell the business or a portion of their ownership interest to satisfy a property division settlement. This can happen when:
- There are insufficient other assets to offset the value of the business.
- The business is jointly owned, and one spouse does not want to sell their interest.
- Financial disputes prevent a fair buyout agreement.
However, selling a business is typically a last resort. Courts generally prefer solutions that allow the company to continue operating, as long as both parties receive a fair share of marital assets.
Florida Statutory Considerations for Business Division
Under Florida Statutes §61.075, the court considers various factors when dividing business assets, including:
- The contribution of each spouse to the business’s success.
- The economic circumstances of both spouses after divorce.
- Any agreements, such as prenuptial or postnuptial contracts.
- The length of the marriage and whether the business was established before or during the marriage.
- Each spouse’s earning capacity and financial need.
If the business remains intact, the court ensures that the non-owner spouse receives a fair financial settlement through other assets, structured payments, or spousal support.
FAQs About Business Ownership and Divorce in Florida
How does a court determine if a business is marital property?
The court reviews how and when the business was acquired, financial contributions from both spouses, and any appreciation in value during the marriage. Even if one spouse solely owned the business, if marital funds were used or if the other spouse contributed to its success, it may be considered marital property.
Can I prevent my spouse from claiming part of my business in a divorce?
If the business was established before marriage and no marital assets were used to fund it, you may be able to keep it separate. Prenuptial or postnuptial agreements and properly structured business agreements can help safeguard ownership.
What happens if both spouses own the business together?
Options include continuing co-ownership, one spouse buying out the other, or selling the business and splitting the proceeds. The best option depends on the relationship between the spouses and the financial feasibility of a buyout.
What if my spouse is hiding business assets?
If you suspect your spouse is concealing business income or undervaluing assets, forensic accounting can help uncover hidden finances. Courts take financial dishonesty seriously and may impose penalties for failing to disclose assets.
Should I negotiate a settlement or go to trial over business division?
Settlement negotiations often lead to better outcomes, as they allow for customized solutions. However, if an agreement cannot be reached, litigation may be necessary to ensure a fair division of assets.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
If your divorce involves a business, you need experienced legal guidance to protect your financial future. Whether you want to keep your business intact or ensure you receive your fair share, I am here to help. Call 1-888-640-2999 to schedule a consultation and discuss your case today.
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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