Protecting Business Interests During Divorce in Orlando
Orlando is a thriving city for business owners, professionals, and entrepreneurs. Many individuals who built successful companies or acquired business interests find themselves facing critical decisions when divorce proceedings begin. One of the biggest concerns in high net-worth divorce cases is whether a business must be sold as part of the asset division process.
As an Orlando high net-worth divorce attorney, I understand that both business owners and their spouses have financial interests at stake. Whether you want to keep the business intact or ensure a fair division of assets, I can provide strategic legal guidance to help you achieve the best possible outcome. If you are facing divorce and need to protect your business interests, call my office at 1-888-640-2999 to schedule a consultation.
How Are Businesses Handled in a Florida Divorce?
Florida is an equitable distribution state, meaning that marital assets—including business interests—are divided fairly, though not necessarily equally. If a business was established, acquired, or grew in value during the marriage, it is typically considered a marital asset. Even if a business was started before the marriage, any increase in value during the marriage could be subject to division.
The first step in determining how a business will be handled is identifying whether it is:
- Separate property – Owned before the marriage with no commingling of marital funds.
- Marital property – Acquired or developed during the marriage using shared funds.
- Partially marital property – Started before marriage but increased in value during the marriage due to the spouse’s contributions or business growth.
Once the business is classified, the court considers several factors to determine how to divide its value without unnecessary disruption.
Will I Be Forced to Sell My Business?
Selling a business is rarely the first option in a Florida divorce. Courts understand that businesses are not just financial assets; they are often a person’s livelihood. However, there are circumstances where selling the business may become necessary, especially when:
- The spouses cannot reach an agreement on business valuation or division.
- One spouse lacks the financial ability to buy out the other’s interest.
- The business structure makes co-ownership after divorce impractical.
- There are insufficient other assets to offset one spouse’s share of the business.
If selling is unavoidable, the proceeds from the sale will typically be divided according to Florida’s equitable distribution laws.
Options to Keep a Business Intact
If you are a business owner seeking to retain full ownership of your company, there are several legal strategies to consider:
1. Business Buyout
The most common solution is for one spouse to buy out the other’s share. This requires a fair business valuation, which can be achieved with forensic accountants or business valuation experts. A buyout may involve:
- Using personal assets or liquid funds.
- Offsetting the business interest with other marital assets, such as real estate, retirement accounts, or investments.
- Structuring a payment plan to buy out the other spouse over time.
2. Trade-Off in Asset Division
Instead of selling the business, one spouse may agree to take a larger share of other marital assets in exchange for the business owner keeping full ownership. This can involve:
- Giving up rights to the marital home.
- Waiving claims to high-value investments.
- Accepting a reduced share of retirement accounts.
3. Co-Ownership Agreements
If both spouses have a vested interest in the business and can work together, they may choose to remain co-owners post-divorce. This option requires careful structuring, including:
- A formal shareholder or partnership agreement.
- Clearly defined roles and financial distributions.
- A plan for future exit strategies if co-ownership is no longer viable.
4. Pre-Divorce Restructuring
In some cases, restructuring the business before the divorce can help protect its long-term stability. This may include:
- Transferring ownership to a trust.
- Bringing in third-party investors.
- Modifying the business structure to limit divisible marital interest.
Florida Statutes on Business Division in Divorce
Under Florida Statute § 61.075, courts determine equitable distribution based on various factors, including:
- The length of the marriage and each spouse’s contributions.
- The economic circumstances of each party.
- Whether one spouse interrupted their career or education for the other.
- The intentional dissipation or waste of marital assets.
If one spouse argues that they should receive a greater share of business assets, they must present evidence supporting their claim. This could include showing how their efforts contributed to the company’s growth or how the other spouse used business income for personal expenses.
What If My Spouse Was Not Involved in the Business?
Even if your spouse did not participate in daily business operations, they may still have a claim to its value. Florida courts recognize indirect contributions, such as:
- Supporting the business owner’s career by managing household responsibilities.
- Investing marital funds into the business.
- Sacrificing their own career opportunities for the business owner’s success.
These contributions can influence how the court allocates business interests during the divorce.
Can My Spouse Force Me to Sell the Business?
A spouse cannot automatically force the sale of a business. However, if both parties have an ownership stake and cannot agree on a fair buyout or settlement, the court may order the sale. To prevent this, working with an Orlando high net-worth divorce attorney can help negotiate solutions that protect your business.
What If the Business Is My Primary Source of Income?
Courts take into account whether selling a business would unfairly impact one spouse’s ability to earn a living. If the business is the primary source of income, Florida courts may:
- Allocate more marital assets to the non-owner spouse instead of business interests.
- Order structured buyout payments rather than an immediate lump sum.
- Allow the owner to continue operating the business while compensating the other spouse.
How an Orlando High Net-Worth Divorce Attorney Can Help
Dividing business assets in a divorce requires strategic legal planning. Whether you are a business owner protecting your company or a spouse seeking fair compensation, I will work to:
- Evaluate business valuation methods that align with your financial interests.
- Negotiate settlement terms that preserve business operations.
- Advocate for equitable division based on Florida law.
- Protect your rights in cases of disputed ownership or hidden assets.
To discuss how I can assist you in your high net-worth divorce case in Orlando, call 1-888-640-2999 to schedule a consultation.
FAQs
Can I protect my business from divorce with a prenuptial or postnuptial agreement?
Yes, prenuptial and postnuptial agreements can establish whether a business remains separate property or define how it will be handled in the event of divorce. Courts generally uphold these agreements if they are properly executed and do not contain unfair terms.
What if I co-own the business with partners?
If your business has other owners, your divorce could affect them as well. Partnership agreements, shareholder agreements, and operating agreements may include provisions that prevent a spouse from claiming ownership or require a buyout to avoid business disruptions.
Can business income be factored into alimony payments?
Yes, business income can be used to determine alimony obligations. Courts examine whether the income is consistent, whether the business owner takes a salary, and how much of the business’s profits are considered personal income.
How do I ensure my business is accurately valued during divorce?
Hiring a forensic accountant or business valuation expert is essential to obtain an accurate assessment. The valuation method depends on the type of business, assets, and revenue streams.
What if my spouse accuses me of hiding business assets?
Accusations of hiding business assets can lead to court investigations and financial audits. It is crucial to maintain accurate records and be transparent about your business finances during the divorce process.
Call Us Today To Schedule a Consultation
If you are concerned about protecting your business in a high net-worth Florida divorce, schedule a consultation by calling 1-888-640-2999. Contact Orlando Attorney Beryl Thompson-McClary today to discuss your 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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