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Should You Sell Your Business or Keep It During a Florida Divorce?

Should You Sell Your Business or Keep It During a Florida Divorce?

Understanding Your Options in an Orlando High Net-Worth Divorce

Orlando is home to a thriving business community, with entrepreneurs, doctors, lawyers, and other professionals working hard to build and maintain their businesses. When facing a divorce, business owners must confront a critical decision: Should they sell their business or fight to retain ownership? This decision carries significant financial and legal consequences, particularly in high net-worth divorce cases.

I am Attorney Beryl Thompson-McClary, an Orlando high net-worth divorce Attorney, and I assist business owners and their spouses in evaluating the best course of action in divorce cases involving business assets. If you are going through a divorce in Orange County, Florida, and are unsure whether selling or keeping your business is the right choice, I can help you assess your options and protect your interests. Call my office at 1-888-640-2999 to schedule a consultation and get the legal guidance you need.

Understanding How Florida Law Treats Business Assets in Divorce

Florida follows equitable distribution laws under Section 61.075 of the Florida Statutes, which means that marital assets, including businesses, are divided fairly—but not necessarily equally—between spouses. The court first determines whether the business is marital property or separate property before considering how to distribute its value.

Marital vs. Separate Property in Business Ownership

  • If the business was started before the marriage and no marital funds were used to support or grow it, the court may consider it separate property and exclude it from the division process.
  • If the business was started during the marriage or if marital funds or efforts contributed to its growth, the business may be classified as marital property, making it subject to division.
  • Even if one spouse owned the business before marriage, any increase in value during the marriage may be considered a marital asset if the growth was due to joint efforts or financial contributions from both spouses.

Determining whether a business is subject to division requires careful financial analysis and legal evaluation. I work closely with financial professionals to ensure accurate business valuations, protecting my clients from unfair settlements.

Factors to Consider When Deciding to Sell or Keep Your Business

There is no universal answer to whether selling or keeping a business is the best option during a divorce. Each case requires careful analysis of financial, legal, and emotional factors.

Reasons to Keep Your Business

  • The Business Is Your Primary Source of Income: If the business is the primary source of your wealth and professional identity, keeping it may be essential to securing your financial future.
  • You Have a Strong Post-Divorce Business Plan: If you have a plan to maintain and grow the business after divorce, retaining ownership may be the best path forward.
  • The Business Has Long-Term Value: If the business is expected to increase in value, selling it now may not be in your best interest.
  • There Is No Fair Market for Sale: Some businesses are difficult to sell, especially those built around personal reputation, such as medical or legal practices.

Reasons to Sell Your Business

  • The Business Cannot Be Easily Divided: If your spouse is legally entitled to a share and a buyout is not financially feasible, selling the business and dividing the proceeds may be the best solution.
  • The Divorce Is Highly Contested: Some divorces become so contentious that maintaining a business partnership post-divorce is unrealistic.
  • Financial Security Is a Concern: Selling may provide liquidity and eliminate the risks of business fluctuations.
  • Your Spouse Has a Significant Claim to the Business: If your spouse has been actively involved in running the business or if their financial contributions have been substantial, they may seek a direct stake in operations, making a sale more practical.

I help clients carefully evaluate these factors to make informed decisions that align with their financial and legal interests.

Legal and Financial Considerations in Business Valuation

Whether selling or retaining a business, determining its true value is critical. Florida courts typically rely on forensic accountants and business valuation experts to determine the business’s worth. The valuation process considers:

  • Assets and Liabilities
  • Revenue and Profitability
  • Goodwill and Market Position
  • Future Earnings Potential
  • Comparable Business Sales

As an Orlando divorce attorney, I work with financial professionals to ensure that business valuations are accurate and fair, preventing either party from being shortchanged in the divorce process.

Negotiating a Settlement: Buyouts and Asset Offsets

If you wish to keep your business but your spouse is entitled to a portion of its value, there are several negotiation strategies available:

  • Buyout Agreement: Purchasing your spouse’s share of the business through a structured payment plan.
  • Asset Offsets: Trading other assets (such as real estate or investments) in exchange for full business ownership.
  • Profit-Sharing or Deferred Payouts: Agreeing to structured payments over time based on future business performance.

My role is to protect your interests, ensuring you do not overextend yourself in negotiations and securing a settlement that aligns with your long-term financial stability.

FAQs About Business Ownership and Divorce in Florida

Can I continue running my business during the divorce process?

Yes. However, courts may issue temporary orders restricting financial transactions that could significantly alter the business’s value. I ensure my clients maintain operational control while complying with legal requirements.

What if my spouse was never involved in the business? Can they still claim part of it?

Even if your spouse had no direct involvement, they may still be entitled to a share of the business’s value if marital funds were used for business growth. I analyze financial records to ensure fair treatment in these cases.

Will my business be forced to close because of my divorce?

Not necessarily. Many business owners successfully negotiate settlements that allow them to continue operations. I help clients explore all possible avenues before considering closure.

How is goodwill factored into business valuation?

Goodwill, or the intangible value of a business’s reputation and customer relationships, is often included in valuations. Courts distinguish between enterprise goodwill (which is transferable) and personal goodwill (which is tied to an individual). I advocate for accurate assessments that protect my clients’ financial interests.

Can a prenuptial or postnuptial agreement protect my business in divorce?

Yes. If properly drafted and enforceable, these agreements can shield business assets from division. If you have one in place, I will assess its validity and advocate for its enforcement.

What happens if my business partner is concerned about my divorce affecting the company?

Business partners often worry that a divorce will disrupt operations. I work with business owners to create legal agreements that protect both personal and business interests.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation

Determining whether to sell or keep your business in a high net-worth divorce requires careful legal and financial planning. I am committed to helping business owners and their spouses protect their interests and secure fair settlements. If you are facing this decision, call my office today at 1-888-640-2999 to schedule a consultation and discuss your best legal options.

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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The Impact of Florida Divorce on Family-Owned Businesses

The Impact of Florida Divorce on Family-Owned Businesses

Protecting Business Interests in High Net-Worth Divorce Cases

Orlando is home to many successful professionals and business owners who have built their companies from the ground up. For those going through a high net-worth divorce, protecting a family-owned business becomes a major concern. Whether you are the spouse who owns and operates the business or the one who supported its growth, the outcome of your divorce will significantly impact its future.

At Beryl Thompson-McClary, P.A., we understand the complexities of high-asset divorces, particularly when business ownership is involved. We represent both business owners seeking to protect their life’s work and spouses entitled to their fair share of business assets. Every case is unique, and a tailored legal approach is essential to ensuring financial security and a just outcome. If you need guidance, call 1-888-640-2999 to schedule a consultation.

How Florida Law Treats Family-Owned Businesses in Divorce

Florida follows equitable distribution laws, which means that marital assets, including business interests, are divided fairly—not necessarily equally. Whether a business is considered marital or non-marital property depends on several factors, including when the business was established, whether marital funds were used to support it, and whether both spouses contributed to its growth.

Under Florida Statutes § 61.075, the court determines asset division based on factors such as:

  • Whether the business was started before or during the marriage
  • How much marital labor or assets contributed to its success
  • The increase in business value during the marriage
  • Any existing agreements, such as prenuptial or postnuptial contracts

Protecting a Business in Divorce

For business owners, divorce can pose a serious threat to operations, profitability, and ownership structure. Without proper legal protections, the court may award a portion of the business to the non-owner spouse, require liquidation, or order financial adjustments to offset its value.

Some key ways to protect business interests in high net-worth divorce cases include:

1. Prenuptial or Postnuptial Agreements

A well-drafted agreement that clearly defines ownership and asset distribution can prevent disputes before they arise. Courts generally enforce valid agreements unless they are found to be unconscionable or signed under duress.

2. Business Valuation

Determining the accurate value of the business is critical in divorce proceedings. A forensic accountant may assess:

  • Business assets, liabilities, and revenue
  • Cash flow and projected earnings
  • Market comparisons and goodwill valuation

The valuation process directly affects how much a spouse may receive in the settlement or whether other financial adjustments are necessary.

3. Buying Out the Other Spouse’s Interest

If the business is classified as marital property, the owner spouse may need to compensate the other spouse for their share. This can be done through a structured buyout, offsetting with other marital assets, or securing financing to maintain sole ownership.

4. Establishing Trusts or Separate Entities

Some business owners restructure ownership by placing their business interests in trusts or separate legal entities before marriage or divorce proceedings. However, courts may still evaluate whether these actions were taken to avoid equitable distribution.

When You Are the Spouse Entitled to Business Assets

If you supported your spouse in building or maintaining the business, you may be entitled to a significant share of its value. Contributions can include:

  • Direct involvement in business operations
  • Financial investments in the company
  • Taking on household responsibilities to allow the other spouse to focus on business growth

Even if you are not listed as an owner, Florida courts recognize indirect contributions and may award compensation through a lump-sum payment, spousal support, or asset division.

Tax Implications of Business Asset Division

Dividing a business in divorce can have significant tax consequences, particularly when selling shares, transferring assets, or structuring alimony payments. Florida courts consider:

  • Capital gains taxes on business sales
  • Tax-deductible spousal support payments
  • Depreciation and asset write-offs affecting post-divorce finances

Proper legal and financial planning can help reduce tax liabilities and maximize financial security.

How High Net-Worth Divorces Affect Business Operations

Divorce proceedings can directly impact daily business operations, including:

  • Loss of business focus due to legal disputes
  • Employee concerns about company stability
  • Client uncertainty affecting contracts and partnerships
  • Legal fees and financial strain on business resources

To minimize disruption, it is essential to work with an Orlando high net-worth divorce attorney who understands both the legal and business implications of divorce.

Legal Strategies for Business Owners and Their Spouses

Divorces involving business assets require strategic planning to protect financial interests and maintain business continuity. Some legal options include:

1. Structured Settlements

Instead of selling or splitting the business, one spouse may receive compensation through structured payments over time, preserving operational control while ensuring a fair settlement.

2. Co-Ownership Agreements

In rare cases, divorcing spouses choose to remain business partners post-divorce. This requires clear agreements on roles, responsibilities, and financial distributions.

3. Liquidation

If maintaining the business is not financially viable, liquidation may be an option. This requires careful tax and financial planning to ensure a fair division of proceeds.

Why Choose Attorney Beryl Thompson-McClary?

High net-worth divorces require a law firm with the experience to handle complex asset division, business valuations, and tax implications. At Beryl Thompson-McClary, P.A., we represent both business owners and their spouses to ensure fair and legally sound outcomes.

If you are considering divorce and own a family business, or if your spouse owns a business and you want to protect your financial interests, call 1-888-640-2999 to schedule a consultation.

Frequently Asked Questions About Divorce and Business Ownership in Florida

How does a Florida divorce affect ownership of a family business?
Florida law requires equitable distribution of marital assets, which can include a family business. The outcome depends on whether the business is classified as separate or marital property, as well as how much the non-owner spouse contributed to its success.

What if my spouse and I co-own a business together?
If both spouses are legal business owners, there are several options: one spouse buys out the other, the business is sold and the proceeds are split, or both continue operating it under a formal partnership agreement.

Can a business be considered separate property in a Florida divorce?
A business may be classified as separate property if it was established before the marriage and did not receive financial or operational contributions from the non-owner spouse. However, if marital funds or labor were used to grow the business, a portion may still be considered marital property.

How is a business valued during a Florida divorce?
Business valuation typically involves reviewing financial statements, assets, debts, earnings, and market value. A forensic accountant may also assess goodwill and future income projections.

What happens if my spouse hides business assets during divorce?
Hiding assets in a divorce is illegal. Courts may impose penalties, adjust asset distribution, or appoint forensic accountants to investigate financial records. An Orlando high net-worth divorce attorney can help uncover concealed business assets.

Will I have to sell my business to pay a divorce settlement?
Not necessarily. Other options include structured buyouts, offsetting with other marital assets, or making financial settlements over time to retain business ownership.

Can I protect my business from future divorce claims?
Prenuptial and postnuptial agreements are effective tools for defining business ownership and protecting assets. Business owners can also establish trusts or separate legal entities before marriage to limit claims.

How does divorce affect business tax obligations?
Dividing business assets can trigger capital gains taxes, impact deductions, and affect financial planning. Tax-efficient settlements help mitigate long-term liabilities.

What are my options if my spouse was the primary business owner?
If you contributed to the business’s growth, you may be entitled to a portion of its value. Courts may award financial compensation through a buyout, alimony, or asset division.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For Your Initial Consultation

If you’re facing a high-net-worth divorce involving substantial assets, it’s essential to work with our experienced Orlando divorce attorney who understands the complexities of these cases. Call me today to schedule an initial consultation and learn how we can protect your interests and achieve a fair resolution.

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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Handling Business Valuations During a Florida High Net-Worth Divorce

Handling Business Valuations During a Florida High Net-Worth Divorce

Legal Guidance for Business Owners and Spouses in Orlando

Orlando is home to a thriving business community, with professionals and entrepreneurs building substantial financial success. When a high net-worth couple decides to divorce, one of the most complex issues they face is the division of business interests. Whether you own a company or your spouse does, ensuring a fair and accurate valuation is critical to achieving a just resolution.

I am Attorney Beryl Thompson-McClary, an Orlando high net-worth divorce Attorney, and I help business owners and their spouses navigate the intricacies of business valuations in divorce cases. I work with individuals on both sides of this issue, whether they need to protect their business from being unfairly divided or ensure they receive their rightful share of marital assets. My firm handles high net-worth divorces throughout Orange County, Florida. To discuss your case, call 1-888-640-2999 to schedule a consultation.

Understanding Business Valuations in a Florida High Net-Worth Divorce

Florida follows equitable distribution laws, meaning that marital assets are divided fairly but not necessarily equally. Business interests can be among the most valuable and complex assets involved in a divorce. Determining their worth requires a thorough valuation process.

A business valuation provides a comprehensive analysis of the company’s assets, liabilities, revenue, and potential for future growth. Courts rely on these valuations to determine whether a business is marital property, how much it is worth, and how it should be divided between spouses. This process can be contentious, as each party may have competing interests in how the business is valued.

How Florida Law Defines Business Assets in Divorce

Under Florida Statutes § 61.075, assets acquired during the marriage are generally considered marital property, including businesses started or expanded with marital funds. However, if a business was established before the marriage, part of it may still be considered marital property if its value increased due to the spouse’s involvement or shared financial contributions.

The court will consider:

  • Whether the business was founded before or during the marriage.
  • How much each spouse contributed to its growth.
  • Whether one spouse was actively involved in managing the company.
  • Whether marital funds were used to support or expand the business.

Methods Used to Value a Business in Divorce

There are several methods professionals use to determine the fair market value of a business in a Florida divorce. The method used often depends on the nature of the business and what both parties agree upon.

  • Income Approach: This method calculates value based on projected future earnings, considering the company’s profitability, expenses, and revenue trends.
  • Market Approach: This valuation compares the business to similar businesses that have recently been sold.
  • Asset Approach: This method evaluates the tangible and intangible assets of the company and subtracts liabilities to determine net worth.

In high net-worth divorces, it’s not uncommon for each spouse to hire separate experts, leading to competing valuations. As an Orlando high net-worth divorce Attorney, I work with top forensic accountants and financial experts to ensure my clients have a well-supported valuation that protects their interests.

Addressing Business Ownership and Division in Florida Divorces

Once the valuation is established, the next issue is how the business will be handled in the divorce. The court may consider different options depending on each spouse’s role in the company and their financial circumstances.

  • One Spouse Buys Out the Other: If one spouse wishes to keep the business, they may negotiate a buyout by offsetting the value with other assets such as real estate or investment accounts.
  • Co-Ownership: In rare cases, spouses may agree to continue owning and running the business together post-divorce, though this requires a high level of cooperation.
  • Selling the Business: If neither spouse can afford to buy the other out, the court may order the sale of the business, with proceeds divided equitably.

Each of these outcomes has legal and tax implications that should be carefully considered. My goal is to protect your financial future by ensuring the best possible arrangement for your situation.

Common Disputes in Business Valuation During Divorce

Because businesses can be a significant source of wealth, disputes often arise regarding their valuation and division. Some common conflicts include:

  • Underreporting or Overreporting Income: A business owner may attempt to undervalue the company to reduce the amount owed to their spouse, while the other spouse may argue that the business is worth more.
  • Hidden Assets: One spouse may try to conceal income, assets, or business opportunities.
  • Disagreement on Valuation Method: Each spouse may rely on different valuation experts, leading to vastly different estimates.

These disputes can significantly impact the outcome of a divorce. With strong legal representation, you can ensure the valuation is accurate and that your interests are protected.

Protecting Your Business in a Florida Divorce

If you are a business owner, taking proactive steps before and during a divorce can help protect your company. Some strategies include:

  • Having a Prenuptial or Postnuptial Agreement: A legally binding agreement can define how business interests will be handled in the event of a divorce.
  • Keeping Business and Personal Finances Separate: Avoiding the use of marital funds in business operations can help distinguish the business as separate property.
  • Structuring Ownership Properly: Setting up the business in a way that limits spousal ownership rights can be beneficial.

If you did not put these protections in place before marriage, I can help you develop a strategy to safeguard your business interests during your divorce proceedings.

FAQs About Business Valuations in Florida High Net-Worth Divorces

What happens if my spouse helped grow my business during our marriage?

Even if you owned the business before marriage, your spouse may be entitled to a share of the increased value if they contributed to its success. Contributions may include financial support, operational involvement, or even taking on domestic responsibilities that allowed you to focus on the business.

Can I keep my business if I don’t want to sell it?

Yes, but it often requires negotiating a buyout. This can be done by offsetting the value with other assets, refinancing, or setting up structured payments. My role is to help you find a solution that protects your business while ensuring a fair settlement.

What if my spouse tries to claim more than they are entitled to?

A strong legal strategy is essential to ensure your spouse does not unfairly inflate their claim. I work with forensic accountants and business valuation experts to present an accurate financial picture and advocate for a fair outcome.

How long does the business valuation process take?

It depends on the complexity of the business and whether both parties agree on the valuation. If disputes arise, the process can take months. I work to expedite valuations while ensuring they are thorough and defensible.

What if my business is deeply in debt?

Debts are considered alongside assets. If your business carries significant liabilities, this will be factored into the valuation. Understanding the full financial picture is essential to ensure fair treatment in asset division.

Call Attorney Beryl Thompson-McClary to Discuss Your Case

If you are facing a high net-worth divorce involving a business, you need legal guidance to ensure that your interests are protected. I represent both business owners and spouses seeking their fair share of marital assets. Contact me at 1-888-640-2999 to schedule a consultation and discuss your case.

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Should You Sell Your Business or Keep It During Divorce?

Should You Sell Your Business or Keep It During Divorce?

Protecting Your Business Interests in an Orlando High Net-Worth Divorce

Orlando is home to a thriving business community, with professionals, entrepreneurs, and small business owners contributing to the region’s economic success. When a marriage ends, the fate of a business becomes one of the most pressing concerns for high-net-worth individuals. Deciding whether to sell or keep a business during a divorce requires careful consideration of legal, financial, and emotional factors.

As an Orlando high net-worth divorce attorney, I assist business owners, professionals, and spouses in understanding their rights and options under Florida law. Every divorce is unique, and I work closely with my clients to protect their financial interests while ensuring a fair resolution. If you are facing a divorce and own a business, call me at 1-888-640-2999 to discuss the best approach for your situation. I handle high-net-worth divorce cases throughout Orange County, Florida, and will help you make informed decisions about your business.

Understanding Business Division in a Florida Divorce

Florida is an equitable distribution state, meaning that marital assets are divided fairly, though not necessarily equally. Under Florida Statutes § 61.075, the court examines several factors to determine how a business should be classified and divided. If the business was started during the marriage or its value significantly increased due to joint efforts, it may be considered a marital asset.

Determining whether to sell or keep the business requires analyzing key issues, including:

  • Whether the business is classified as marital or non-marital property
  • The impact of an ownership split on business operations
  • Valuation complexities and tax implications
  • The feasibility of a buyout agreement

Each of these factors can significantly impact the final resolution, making it essential to approach the decision with a clear strategy.

Keeping the Business After Divorce

If maintaining ownership of the business is the goal, several options are available:

Buyout of the Other Spouse’s Interest

One of the most common solutions is a buyout. This allows one spouse to retain full ownership while compensating the other for their share. A fair market valuation is essential in determining the appropriate buyout amount. Florida courts require full financial disclosure, and hiring a business valuation expert is often necessary to ensure accuracy.

A buyout can be structured in various ways:

  • A lump sum payment
  • Offsetting with other marital assets (e.g., real estate, retirement funds)
  • Structured payments over time

Each option has financial consequences that must be carefully evaluated.

Negotiating a Settlement That Preserves the Business

In some cases, spouses agree on a settlement that allows the business owner to continue operations without disruption. This could involve adjusting alimony or other financial obligations to compensate the non-owner spouse fairly.

Legal Protection for Business Owners

If the business is a sole proprietorship or professional practice, keeping control is often a priority. Florida courts may consider the business owner’s role in generating income, especially if the other spouse does not have an active interest in operations. Proper legal guidance can help structure an agreement that secures ownership without jeopardizing long-term financial stability.

Selling the Business During Divorce

In some situations, selling the business is the most practical solution. This may be necessary when:

  • Neither spouse can afford a buyout
  • The business is highly dependent on both spouses
  • Selling would provide both parties with the best financial outcome

How Business Sales Work in a Divorce

A business sale during divorce typically involves:

  • Valuation: Determining an accurate market price through professional appraisal
  • Finding Buyers: Seeking qualified buyers who can purchase the business at a fair price
  • Dividing Proceeds: Allocating the sale proceeds in accordance with Florida’s equitable distribution laws

If the court orders the sale, both parties must comply with legal requirements, ensuring full transparency in financial disclosures.

Tax and Financial Implications of Selling

Selling a business comes with potential capital gains taxes and financial consequences. Proper tax planning can minimize unnecessary burdens, making it essential to consult financial professionals before making a decision.

How Attorney Beryl Thompson-McClary Can Help

As an Orlando high net-worth divorce attorney, I have extensive experience handling complex property division cases involving businesses, professional practices, and high-value assets. Whether you are a business owner seeking to protect your interests or a spouse entitled to a fair share, I will develop a legal strategy tailored to your goals.

  • Comprehensive business valuation guidance
  • Negotiating fair settlements to retain or divide business assets
  • Addressing tax and financial considerations
  • Advocating for clients in high-stakes divorce litigation

If you are facing a divorce that involves business ownership, I encourage you to call 1-888-640-2999 to schedule a consultation. I represent clients throughout Orange County, Florida, and will ensure that your financial future is protected.

FAQs About Selling or Keeping a Business in a Florida Divorce

How does Florida determine whether a business is marital property?

Florida courts examine when the business was established and how it was managed during the marriage. If the business was created during the marriage, it is typically classified as a marital asset. Even if it was founded before marriage, increased value due to joint efforts may make part of it subject to division.

What happens if both spouses want to keep the business?

If both spouses wish to retain ownership, the court may consider factors such as each spouse’s role in operations and financial capability. In some cases, one spouse may be required to buy out the other’s interest. If no agreement is reached, the court may order a sale.

How is a business valued in a high-net-worth divorce?

A professional business valuation is typically required. Experts analyze financial statements, market trends, goodwill, and other factors to determine an accurate valuation. Courts may rely on forensic accountants to assess the business’s fair market value.

Can a business be used to offset other assets in a divorce settlement?

Yes. If one spouse wants to keep the business, they may offer other assets (such as real estate, investment accounts, or retirement funds) to balance the division. Courts allow flexibility in asset distribution to ensure an equitable outcome.

What are the tax consequences of selling a business during divorce?

Selling a business may trigger capital gains taxes, which can impact the overall financial settlement. Consulting with a tax professional before finalizing the sale is crucial to understanding potential tax liabilities.

Does a prenuptial agreement affect business division in divorce?

A prenuptial agreement can provide clear terms regarding business ownership and asset division. Courts generally uphold valid prenuptial agreements, reducing disputes over business interests during divorce.

How long does it take to resolve business-related divorce issues?

The timeline varies depending on the complexity of the case. If spouses can agree on terms, the process may be resolved more quickly. Litigation, however, can extend the timeframe due to valuation disputes and legal negotiations.

What if a business owner hides assets during divorce?

Hiding assets is illegal and can result in severe legal consequences. Courts may impose penalties, award additional assets to the other spouse, or revisit settlement terms if hidden assets are discovered.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation

If you are dealing with business-related concerns in a high-net-worth divorce, I can help you evaluate your options and secure the best outcome for your financial future. Call today to schedule a consultation and receive personalized legal guidance.

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How Florida Law Treats Business Goodwill in Divorce Proceedings

How Florida Law Treats Business Goodwill in Divorce Proceedings

Understanding High Net-Worth Divorce in Orlando

Orlando is home to a growing number of successful professionals, business owners, and entrepreneurs. When divorce enters the picture for those with significant assets, particularly those who own businesses, complex financial questions arise. One of the most contested aspects of a high net-worth divorce in Florida is the valuation and division of business goodwill.

As an experienced Orlando high net-worth divorce attorney, I help business owners and their spouses understand how Florida law treats business goodwill during divorce proceedings. Whether you are protecting your business interests or seeking a fair share of marital assets, I provide strategic legal counsel to ensure that your rights and financial interests are protected. If you need legal guidance, call me, Attorney Beryl Thompson-McClary, at 1-888-640-2999 to schedule a consultation. I handle high-asset divorce cases throughout Orange County and beyond, helping clients achieve fair outcomes in complex financial matters.

What Is Business Goodwill?

In Florida divorce law, business goodwill refers to the intangible value of a business beyond its tangible assets. It represents the reputation, client base, and earning potential of a company. Courts typically divide business goodwill into two categories:

  • Personal goodwill: This value is tied directly to the individual owner’s skills, reputation, and professional relationships. It is considered non-marital and is not subject to equitable distribution.
  • Enterprise goodwill: This portion of goodwill is associated with the business itself and exists independently of the owner. It is considered a marital asset and may be divided during a divorce.

Understanding the distinction between personal and enterprise goodwill is crucial in determining whether and how a business’s value will be divided in a Florida divorce.

Florida Statutes Governing Business Goodwill in Divorce

Florida follows the principle of equitable distribution, which means that marital assets are divided fairly, though not necessarily equally. Under Florida Statutes §61.075, a business or professional practice acquired or developed during the marriage is generally considered a marital asset unless a prenuptial or postnuptial agreement states otherwise.

Courts analyze business goodwill under this statute when determining:

  • Whether goodwill is personal or enterprise-based
  • Whether the business has value separate from the owner
  • Whether the goodwill can be quantified in financial terms

Because personal goodwill is not considered marital property, the spouse who owns the business may argue that its value should be excluded from the marital estate. Conversely, the non-owner spouse may seek to prove that a significant portion of the business’s value is enterprise goodwill, which would be subject to division.

Valuing Business Goodwill in Florida Divorce Cases

Valuation of business goodwill requires a detailed financial analysis. Courts rely on expert testimony from forensic accountants, business valuation specialists, and financial analysts to determine:

  • The historical earnings of the business
  • The role of the business owner in generating revenue
  • Market conditions and industry standards
  • Whether the business has transferable value

Methods commonly used in Florida to value business goodwill include:

  • Income approach: Examines projected future earnings and discounts them to present value.
  • Market approach: Compares the business to similar businesses that have been sold.
  • Asset-based approach: Evaluates the net value of business assets after liabilities.

The business-owning spouse may argue for a lower valuation, emphasizing the importance of personal goodwill, while the other spouse may assert that the business’s ongoing success is tied to enterprise goodwill, increasing its divisible value.

How Business Goodwill Impacts Property Division

Once the value of business goodwill is determined, the court will decide how to handle it in the property division process. Possible outcomes include:

  • Buying out the non-owner spouse: The business owner compensates their spouse for their share of enterprise goodwill.
  • Structured settlements: Payments are made over time rather than in a lump sum.
  • Offsetting assets: The non-owner spouse receives other marital assets, such as real estate or investment accounts, in exchange for their share of business goodwill.
  • Business sale: In some cases, if a fair settlement cannot be reached, the court may order the sale of the business and divide the proceeds.

Each option has financial and tax consequences, making it essential to work with a high net-worth divorce attorney in Orlando who understands complex business valuations and equitable distribution laws.

Protecting Business Interests During Divorce

For business owners, safeguarding a company’s value in divorce requires careful planning. Steps to protect business goodwill include:

  • Prenuptial or postnuptial agreements: Clearly defining how business assets will be handled in the event of divorce can prevent disputes.
  • Business structuring: Operating as a corporation or partnership with buy-sell agreements can limit a spouse’s claim to business goodwill.
  • Compensation adjustments: Demonstrating that income is based on market rates rather than business ownership value can impact goodwill valuation.
  • Keeping personal and business finances separate: Commingling business and personal assets can make it more challenging to argue against enterprise goodwill claims.

How Attorney Beryl Thompson-McClary Can Help

Whether you are a business owner seeking to protect your livelihood or a spouse looking to ensure a fair division of marital assets, I provide comprehensive legal representation tailored to your needs. As an Orlando high net-worth divorce attorney, I have extensive experience handling business goodwill disputes in divorce cases throughout Orange County. I work closely with financial professionals to ensure accurate business valuations and develop strategic legal approaches that align with your financial goals.

If you are involved in a high-asset divorce and need legal guidance on business goodwill and asset division, call me at 1-888-640-2999 to schedule a consultation.

FAQs About Business Goodwill in Florida Divorce

What is the difference between personal and enterprise goodwill?

Personal goodwill is tied directly to the individual business owner’s reputation and skills, meaning it is not subject to division in a divorce. Enterprise goodwill, however, is tied to the business itself and is considered a marital asset if acquired during the marriage.

How do Florida courts determine if business goodwill is personal or enterprise-based?

Courts analyze financial records, expert testimony, and the nature of the business itself. If the business has transferable value beyond the owner’s personal efforts, a portion of the goodwill may be classified as enterprise goodwill and subject to division.

Can a spouse claim a share of business goodwill if they never worked in the business?

Yes. Even if a spouse did not actively work in the business, they may still be entitled to a share of the enterprise goodwill if the business was built during the marriage and contributed to the couple’s overall financial status.

How is business goodwill valued in a Florida divorce?

Valuation experts use financial records, revenue projections, and market comparisons to assess the value of business goodwill. Courts rely on expert testimony to determine a fair assessment.

Can a business owner prevent their spouse from claiming enterprise goodwill?

Business owners can take proactive steps such as having a prenuptial agreement, structuring the business properly, and maintaining separate financial records to minimize the impact of divorce on their business assets.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation

If you are facing a high-asset divorce involving business goodwill, having an experienced attorney on your side is essential. I am dedicated to protecting my clients’ financial interests in high-stakes divorce cases. Call 1-888-640-2999today to schedule a consultation and discuss your legal options.

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Protecting Trade Secrets and Intellectual Property in a Florida Divorce

Protecting Trade Secrets and Intellectual Property in a Florida Divorce

High-Stakes Divorce Cases in Orlando and Protecting Your Business Assets

Orlando is home to thriving businesses, successful professionals, and entrepreneurs who have spent years building their wealth and intellectual property portfolios. When a high net-worth couple goes through a divorce, these valuable assets often become a focal point in property division. Protecting trade secrets, patents, copyrights, and business goodwill is critical, whether you are the spouse who owns these assets or the one who has contributed to their growth.

As an Orlando high net-worth divorce attorney, I represent business owners, executives, and professionals in complex divorces where intellectual property and trade secrets must be safeguarded. At my firm, we ensure that our clients receive fair treatment in property division while protecting business interests and proprietary information. If you are facing a high-stakes divorce, I am here to help. Call me, Attorney Beryl Thompson-McClary, for a consultation at 1-888-640-2999 to discuss your legal options.

Defining Trade Secrets and Intellectual Property in Divorce

Trade secrets and intellectual property can hold significant financial value in a divorce. Florida Statutes §688.002(4)defines a trade secret as information that derives economic value from not being generally known to others and is subject to reasonable efforts to maintain secrecy. This can include proprietary formulas, client lists, confidential business strategies, software, or product designs.

Intellectual property includes trademarks, patents, copyrights, and trade secrets that may be subject to division in a Florida divorce. The treatment of these assets depends on when they were created, whether they are considered marital or separate property, and their financial value.

Marital vs. Separate Property

Under Florida Statutes §61.075, assets acquired during the marriage are typically considered marital property and are subject to equitable distribution. However, intellectual property created before the marriage or protected through a prenuptial or postnuptial agreement may be considered separate property. Even if an intellectual property asset is classified as separate, its increase in value during the marriage may be subject to division.

Protecting Trade Secrets and Intellectual Property in Divorce

When intellectual property and trade secrets are involved in a divorce, maintaining confidentiality and securing fair distribution are priorities. Business owners, tech entrepreneurs, medical professionals, and lawyers may be concerned about their proprietary information becoming public record. Here are legal tools to protect trade secrets during divorce proceedings:

Non-Disclosure Agreements (NDAs)

If trade secrets or proprietary information are part of the divorce, courts may allow the use of non-disclosure agreementsto prevent one spouse from misusing or disclosing confidential business details. An NDA ensures that proprietary business knowledge remains protected during and after the divorce.

Valuation of Intellectual Property

Determining the fair market value of intellectual property requires input from financial experts. This includes assessing:

  • Royalties or licensing agreements
  • The profitability of patents or copyrights
  • The impact of trade secrets on business revenue
  • The goodwill attached to the business due to intellectual property assets

A qualified forensic accountant can help establish an accurate valuation, which is necessary for equitable distribution.

Business Buyouts and Settlements

In some cases, it is preferable to negotiate a buyout agreement where the business-owning spouse compensates the other spouse for their share of the intellectual property’s value. A structured settlement can prevent business disruption while ensuring a fair division of assets.

Protecting Future Business Interests

A spouse with a stake in a business that relies on trade secrets may require protective orders to ensure proprietary information is not used to gain an unfair advantage. Courts may issue orders preventing a former spouse from disclosing sensitive information or interfering with business operations.

Challenges in Equitable Distribution of Trade Secrets

Florida follows the principle of equitable distribution, meaning that marital assets are divided fairly, though not necessarily equally. Intellectual property and trade secrets present unique challenges in this process:

  1. Valuation Disputes – Unlike physical property, trade secrets and patents can be difficult to appraise. Courts may rely on expert testimony to determine their true value.
  2. Future Income Considerations – Intellectual property often generates revenue over time. Courts may structure settlements to account for future royalties or licensing fees.
  3. Business Continuity Concerns – Dividing trade secrets or intellectual property rights between divorcing spouses may impact business operations. Courts strive to balance fairness with protecting the business’s ongoing success.

As an Orlando high net-worth divorce attorney, I work with financial experts and business professionals to safeguard my clients’ financial interests and ensure a fair resolution.

Florida Statutes Governing Trade Secrets in Divorce Cases

Florida law provides protections for trade secrets under the Florida Uniform Trade Secrets Act (§688.001-688.009). This law prevents the misappropriation of trade secrets and allows for legal action if one party improperly discloses proprietary information.

Additionally, Florida Statutes §61.075 governs equitable distribution and outlines factors courts consider in dividing marital assets, including:

  • Contributions to the acquisition and enhancement of marital assets
  • The economic circumstances of each party
  • The desirability of retaining an interest in a business or professional practice
  • Any agreements made between the spouses

These statutes help shape the court’s approach to trade secrets and intellectual property disputes in divorce cases.

Legal Assistance for Business Owners and Spouses in High Net-Worth Divorces

Whether you are a business owner seeking to protect trade secrets or a spouse asserting your rights to marital property, having an experienced attorney is essential. I handle high net-worth divorces in Orlando, ensuring that my clients receive fair treatment while securing their business interests and intellectual property rights.

If you are going through a divorce and need assistance with complex asset division, call me today at 1-888-640-2999 for a consultation. I will work to protect your financial future and provide a legal strategy tailored to your needs.

FAQs About Trade Secrets and Intellectual Property in Divorce

How do Florida courts determine whether intellectual property is marital or separate property?

Florida courts consider when the intellectual property was created, whether marital funds contributed to its development, and if the other spouse played a role in its success. If the intellectual property was created before the marriage but grew in value during the marriage, a portion of that increased value may be subject to division.

Can a spouse claim rights to a business’s trade secrets during a divorce?

A spouse may claim a share of the business’s value, but trade secrets themselves are usually protected under Florida’s trade secret laws. Courts may issue confidentiality agreements or protective orders to prevent disclosure of sensitive information.

How are business assets valued in a Florida divorce?

Valuation experts assess business assets based on income, market value, and goodwill. If a business relies heavily on intellectual property, forensic accountants may calculate projected earnings from patents, copyrights, or trade secrets.

What happens if my spouse tries to use my business’s trade secrets against me?

If a spouse improperly uses or discloses trade secrets, legal action can be taken under the Florida Uniform Trade Secrets Act. Courts may issue injunctions and award damages if misappropriation occurs.

Should I negotiate a settlement instead of going to court?

Settlement negotiations allow greater control over the outcome and can protect business interests more effectively than litigation. I help clients negotiate favorable settlements while ensuring their rights are fully protected.

Call Attorney Beryl Thompson-McClary Today

Protecting trade secrets and intellectual property in a Florida divorce requires strategic legal planning. Call Orlando high net-worth divorce attorney Beryl Thompson-McClary at 1-888-640-2999 for an initial consultation to discuss how I can help secure your business and financial future.

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How Do Florida Courts Divide a Business in a High Asset Divorce Case?

How Do Florida Courts Divide a Business in a High Asset Divorce Case?

Protecting Your Business and Financial Interests in an Orlando High Net-Worth Divorce

Orlando is home to a thriving business community, with many professionals, entrepreneurs, and business owners building successful enterprises. When a high-net-worth couple goes through a divorce, one of the most challenging aspects is dividing a business. Florida courts follow strict guidelines when handling these disputes, but every case is unique. Whether you are a business owner seeking to protect your interests or the spouse of a business owner who is entitled to a fair share, you need an experienced attorney who understands how to handle complex financial matters in divorce.

Attorney Beryl Thompson-McClary has decades of experience helping high-net-worth clients in Orlando and throughout Orange County, Florida, secure favorable outcomes in their divorces. Whether you need to protect your business assets or ensure that you receive what you are entitled to, I will fight for your rights and financial stability. Call 1-888-640-2999 for a consultation and find out how I can assist you.

How Florida Law Defines a Business as a Marital Asset

Florida follows equitable distribution when dividing assets in a divorce. This does not mean a 50/50 split—it means a fair division based on various factors. Under Florida Statute § 61.075, assets and liabilities are classified as either marital or non-marital property.

A business can be categorized as:

  • Marital Property – If the business was started during the marriage or increased in value due to contributions from the spouse, it is subject to division.
  • Non-Marital Property – If the business was owned before the marriage and has not been commingled with marital assets, it may remain separate.

The issue becomes more complex when the non-owning spouse has contributed to the business financially or by supporting the business owner’s career. In such cases, the court may award the non-owning spouse a portion of the business value.

How Courts Value a Business in a High Net-Worth Divorce

One of the first steps in dividing a business is determining its value. Courts rely on financial experts, forensic accountants, and business valuation professionals to assess the business’s worth. The three most common valuation methods include:

  1. Market Approach – Compares the business to similar businesses that have been sold.
  2. Income Approach – Examines revenue, profitability, and cash flow to determine future earnings.
  3. Asset Approach – Values the business based on its tangible and intangible assets.

If a business is closely held or privately owned, determining its value can be particularly complex. Many business owners attempt to undervalue their business or hide assets. Courts take a close look at tax returns, profit and loss statements, and financial records to ensure transparency.

Options for Dividing a Business in Divorce

Dividing a business is not as simple as splitting it down the middle. Florida courts consider several methods:

1. One Spouse Buys Out the Other

If one spouse wants to keep the business, they may buy out the other spouse’s share. This is often done through:

  • A cash settlement
  • Offsetting assets (e.g., the other spouse receives real estate, investments, or retirement accounts)
  • Structured payments over time

2. Selling the Business and Dividing the Proceeds

In some cases, selling the business is the only fair option. This is common when both spouses were involved in operations and neither wants to continue running it alone.

3. Co-Ownership After Divorce

Some couples agree to continue co-owning the business after divorce. This is rare but may be an option if both parties can maintain a professional relationship. A legal agreement is crucial to define roles and responsibilities.

4. Business Recapitalization

This method involves restructuring the business so that the non-owning spouse receives ongoing payments rather than an immediate lump sum. This is useful when liquidity is an issue.

How Florida Courts Protect a Non-Owning Spouse’s Rights

If you are the spouse of a business owner, the court will consider your contributions to the business. These can include:

  • Direct financial investments
  • Managing operations, bookkeeping, or marketing
  • Supporting the business owner through childcare and household duties

Under Florida Statute § 61.08, spousal support may also be awarded if one spouse has sacrificed their career for the business.

If a business owner tries to conceal income or undervalue the business, I work with forensic accountants to uncover hidden assets and ensure full financial disclosure.

How Business Owners Can Protect Their Assets in a Divorce

If you are a business owner, protecting your business from the risk of divorce should be a priority. Some strategies include:

  • Prenuptial and Postnuptial Agreements – Clearly defining business ownership before marriage or during the marriage can prevent disputes.
  • Separate Business and Personal Finances – Keeping business funds separate from marital assets can help prove the business is non-marital property.
  • Structuring the Business Properly – Using legal tools like trusts or shareholder agreements can prevent a spouse from gaining control.
  • Fair Compensation for the Non-Owning Spouse – If a spouse contributes to the business, they should be paid a reasonable salary to prevent future claims.

Why Choose Attorney Beryl Thompson-McClary?

High-asset divorces require an attorney with the legal knowledge and financial understanding to handle complex cases. I work with top financial experts to ensure that assets are properly valued and fairly divided. Whether you are a business owner or the spouse of a business owner, I will protect your interests and fight for the best possible outcome.

Call 1-888-640-2999 today for a consultation and let’s discuss your case.

FAQs About Business Division in High-Net-Worth Florida Divorces

How can I prove that my business is non-marital property?
If you owned the business before marriage and did not mix marital funds with business finances, it may be classified as separate property. However, if your spouse contributed to its growth, the court may still consider it a marital asset. Keeping clear financial records and business agreements can help establish ownership.

What if my spouse worked in the business but was not on the payroll?
Florida courts recognize contributions beyond direct financial investment. If your spouse worked in the business, handled administrative tasks, or helped in any way, they may be entitled to a share of its value. The court will consider factors such as time, effort, and impact on business growth.

Can I transfer my business to someone else to avoid dividing it?
Attempting to transfer business assets before divorce can be considered fraudulent conveyance under Florida law. If the court finds that you tried to hide assets, it can reverse the transfer and impose financial penalties. Full transparency is critical to avoid legal consequences.

Does my spouse have the right to run the business after divorce?
If you own the business, your spouse cannot take control unless they have a legal claim to ownership. However, if the business is a marital asset, they may be entitled to a portion of its value. The court may order a buyout or revenue-sharing arrangement.

What happens if my business partner doesn’t want my spouse involved?
Business partners often have concerns when one owner goes through a divorce. If your business has a partnership agreement or operating agreement, it may include provisions that prevent ownership from transferring to a non-partner spouse. This can help limit disruption to the business.

How do I prevent my ex from knowing my company’s financial details?
While courts require full disclosure of financial records, certain protections can be put in place. A confidentiality agreement can limit the information your spouse can share, and the court may allow redacted versions of sensitive business records to protect trade secrets.

What if my spouse and I both want to keep the business?
If both spouses want to continue owning the business, courts may consider a co-ownership arrangement. However, this only works if both parties can cooperate. More commonly, one spouse buys out the other or the business is sold.

How long does it take to resolve business division in a divorce?
The timeline depends on the complexity of the business. If the business requires extensive valuation, forensic accounting, or litigation, the process can take months or even longer. An amicable settlement can speed up the resolution.

Call Now for High Net-Worth Divorce Representation in Orlando

Dividing a business in a divorce is a complex legal matter that requires skilled legal representation. Whether you are trying to protect your business or secure your rightful share, I am here to help.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation.

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What a Florida Court Considers as Income in a Divorce Case

Orlando Adult Guardianship Attorney

A common concern for divorcing spouses is the ability for each to afford a divorce and to be financially independent from their spouse.  There are many details of a divorce case that consider the income of each spouse, such as spousal support, equitable division, and child support.  Hence, it is highly recommended that you and your spouse accurately provide details as to your respective incomes.  

One of the key details to consider regarding the calculation of income is the difference between your gross and net income.  In a divorce case, the court is considers an individual’s net income, as provided in more detail below.  This includes your gross income minus deductions that are allowed per statutory law.  For instance, this net amount is provided on your tax return and can provide you with an accurate gross income along with each deduction to determine the proper net income amount.

However, if you need to perform a present calculation of your net income during a divorce case, which is highly recommended, you must determine your gross income. This includes anything that provides you with a source of monetary benefit. Under Florida law, gross income includes any form of salary, bonuses, hourly wages, overtime pay, commissions, or tips received by a parent, whether employed outside of the home, self-employed or contracted.  Benefits received from worker’s compensation, pensions, annuities, disability, or social security are also included as income for purposes of a Florida divorce case. Income also includes rental income, spousal support payments, interest, royalties, dividends, trusts, or any other type of gain or reimbursement.  

Call the Law Offices of Beryl Thompson-McClary P.A. Today

We have law offices in Orlando and practice in Orange, Seminole, Osceola, Lake, Brevard,and Volusia counties.  To schedule a free initial consultation with an attorney, you can call our office at 1-888-640-2999.

Beryl Thompson-McClary

390 N. Orange Ave., Suite #2300
Orlando, Florida 32801

Tel: 1-888-640-2999
Open: 8 AM to 5 PM or by appointment

Google Maps / Cell Phone Directions |  Email Us

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Deciding What to do with a Marital Home in a Florida Divorce Case

High net worth divorce attorney in Orlando, Florida

When undergoing a divorce, there is likely a concern as to how to handle the marital home, should this apply in your case.  Many people feel that when they are divorcing, that there are only two options available when dealing with the marital home – one spouse retains the home or the house must be sold.  However, there are a variety of things to think about when choosing to divide a home.  For example, these are contingent upon whether there is a financial encumbrance of the home.  If the home has no mortgage, which vastly decreases the spouse’s monthly expenses, which in turn decreases other financial needs such as spousal support while increasing the value of the asset.  Hence, if you believe you will be required to pay spousal support, you may choose to offer your spouse to remain in the marital home so as to decrease their monthly expenses and decrease the amount of spousal support that you will have to pay.  

Conversely, if the home does have a mortgage, the couple should think about the balance of the mortgage in comparison to the value of the house. If the value of the home is less than the outstanding mortgage balance, then there will be no proceeds available to split between the parties and they will owe an outstanding debt that must be paid.  Furthermore, in the event of a mortgage balance and you wish to keep the home, you will need to determine whether you will be able to support the payments and upkeep of the home without financial assistance by your spouse.  If not, then you should consider selling the home.

Call the Law Offices of Beryl Thompson-McClary P.A. Today

We have law offices in Orlando and practice in Orange, Seminole, Osceola, Lake, Brevard,and Volusia counties.  To schedule a free initial consultation with an attorney, you can call our office at 1-888-640-2999.

Beryl Thompson-McClary

390 N. Orange Ave., Suite #2300
Orlando, Florida 32801

Tel: 1-888-640-2999
Open: 8 AM to 5 PM or by appointment

Google Maps / Cell Phone Directions |  Email Us

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