Protecting Your Future in Orlando Divorces
Orlando is a dynamic city filled with professionals who have worked tirelessly to establish their careers and build thriving businesses. For many, a professional practice represents not only a source of income but also years of dedication and effort. When divorce becomes a reality, the question of how Florida law handles the division of professional practices is critical. It’s essential to understand your rights and options during this challenging time.
I’m Beryl Thompson-McClary, a divorce attorney serving Orlando and all of Orange County. I’ve guided countless clients through high-stakes divorce cases involving professional practices, ensuring that their rights and futures are protected. If you’re facing a divorce and own a professional practice, or your spouse does, I’m here to help. Call me at 1-888-640-2999 for an initial consultation. Together, we can address your concerns and develop a strategy tailored to your situation.
The Legal Framework for Professional Practices in Florida Divorces
Florida is an equitable distribution state, which means marital assets are divided fairly but not necessarily equally. Professional practices, including law firms, medical practices, and accounting firms, are often treated as marital assets when they were established or grew significantly during the marriage. The critical task is determining the value of the practice and deciding how to handle its division.
Defining Marital vs. Non-Marital Assets
Under Florida Statutes §61.075, assets acquired during the marriage are typically considered marital property, including professional practices. However, if the practice was established before the marriage, only the appreciation in value during the marriage is subject to division. Non-marital assets, such as those acquired before the marriage or through inheritance, are generally excluded from the division process unless they were commingled with marital assets.
Valuation of Professional Practices
Determining the value of a professional practice is often the most complex aspect of dividing it in a divorce. The court considers several factors to ensure a fair evaluation:
- Goodwill: Goodwill is the reputation, client base, and other intangible factors that contribute to the practice’s value. Florida distinguishes between enterprise goodwill, which is tied to the business itself, and personal goodwill, which is tied to the individual’s reputation and skills. Only enterprise goodwill is subject to division.
- Tangible Assets: This includes office equipment, real estate, and other physical assets owned by the practice.
- Earnings History: The court evaluates the practice’s revenue and profitability over time.
- Liabilities: Any debts or financial obligations tied to the practice are factored into the valuation.
As your attorney, I’ll work with financial experts to ensure the valuation is accurate and accounts for all relevant factors. This ensures you’re treated fairly in the division process.
Options for Dividing Professional Practices
Dividing a professional practice in a Florida divorce can take several forms, depending on the circumstances:
- Buyouts: The spouse who owns the practice may buy out the other’s share, allowing them to retain full ownership.
- Offsetting Assets: Instead of dividing the practice directly, other marital assets, such as real estate or retirement accounts, may be awarded to the non-owner spouse to balance the division.
- Co-Ownership: In rare cases, spouses may agree to continue co-owning the practice temporarily, although this option is often impractical.
My goal is to identify the best option for your specific situation, prioritizing your financial stability and long-term goals.
Protecting Your Professional Practice
If you own a professional practice, protecting its value and integrity is crucial. Florida courts aim to avoid unnecessarily disrupting the practice’s operations. This often means crafting agreements that allow the practice to continue functioning smoothly while ensuring equitable distribution. As your attorney, I’ll advocate for solutions that protect your livelihood and professional reputation.
How Attorney Beryl Thompson-McClary Can Help
Divorces involving professional practices require meticulous attention to detail and a deep understanding of Florida law. Here’s how I can help:
- Comprehensive Case Assessment: I’ll analyze your situation to determine the best strategy for addressing your professional practice during the divorce.
- Expert Collaboration: I work with financial analysts, forensic accountants, and other professionals to ensure accurate valuations and equitable outcomes.
- Tailored Solutions: Every case is unique. Whether you’re looking to retain your practice, negotiate a buyout, or offset assets, I’ll develop a plan that aligns with your priorities.
- Strong Advocacy: I’ll represent your interests both in and out of court, ensuring your voice is heard and your rights are protected.
To discuss your case, call me at 1-888-640-2999 for an initial consultation. I’m here to help you navigate these challenging issues and find a resolution that works for you.
FAQs About Professional Practices in Florida Divorces
How is goodwill handled in the valuation of professional practices?
Goodwill refers to the intangible value of a business, including its reputation and client relationships. Florida law distinguishes between enterprise goodwill, which is tied to the business itself, and personal goodwill, which is tied to the individual’s skills. Only enterprise goodwill is subject to division in a divorce. For example, a medical practice’s established patient base may be considered enterprise goodwill, while the reputation of a specific doctor may fall under personal goodwill.
What happens if my spouse helped grow the practice during the marriage?
If your spouse contributed to the growth of the practice—whether through direct involvement or by supporting you in other ways—the court may consider that contribution when dividing marital assets. This can affect the valuation and the division of the practice. Florida courts aim to recognize both tangible and intangible contributions made during the marriage.
Can a professional practice be sold during the divorce?
In some cases, selling the practice may be an option, especially if neither spouse wants to retain ownership or if a buyout isn’t feasible. However, selling a practice can be disruptive and may not always be the best solution. I’ll help you explore alternatives to avoid unnecessary complications.
What if my spouse owns the practice, and I don’t want to disrupt its operations?
If your spouse owns the practice and you prefer not to interfere with its operations, we can pursue solutions like a buyout or offsetting assets. This ensures you receive your fair share of the marital property without impacting the business’s day-to-day activities.
Are professional practices always considered marital property?
Not necessarily. If the practice was established before the marriage and its value did not increase significantly during the marriage, it may be considered non-marital property. However, if the practice grew or changed substantially while you were married, the increased value may be subject to division. I’ll review the details of your case to determine how the law applies.
How are liabilities handled in the division of professional practices?
Liabilities, such as business loans or other debts tied to the practice, are considered during the valuation process. These obligations may reduce the overall value of the practice and impact the division of assets. I’ll ensure all liabilities are accurately accounted for to achieve a fair outcome.
Do I need a forensic accountant for my case?
In many high-value divorce cases, a forensic accountant is essential for accurately valuing assets and identifying hidden income or expenses. I work closely with trusted financial experts to ensure all aspects of your case are thoroughly addressed.
Can I modify the terms of the divorce settlement later?
Once a divorce settlement is finalized, modifying terms related to property division is generally not allowed. However, terms related to alimony or child support may be subject to modification if there are significant changes in circumstances. I’ll help you understand what can and cannot be modified.
What steps should I take to protect my practice during a divorce?
Protecting your practice starts with gathering detailed financial records, ensuring compliance with court requirements, and working with an experienced attorney. I’ll guide you through each step to safeguard your interests and minimize disruptions to your business.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For an Initial Consultation
If you’re facing a divorce that involves a professional practice, don’t leave your future to chance. Contact me, Beryl Thompson-McClary, to discuss your case. Together, we’ll develop a strategy to protect your rights and achieve a fair outcome. Call me for an initial consultation at 1-888-640-2999 to discuss your situation. Together, we’ll determine the best course of action for your family.
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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