Business Ownership and Divorce in Orlando
Orlando is home to a thriving business community, with entrepreneurs, medical professionals, and corporate executives leading successful ventures. While building a business is a rewarding achievement, it can become a significant concern during a divorce. For business owners and their spouses, the question arises: How will the business be treated under Florida law?
As an Orlando high net-worth divorce Attorney, I assist individuals on both sides of this issue. Whether you are a business owner looking to protect your company or a spouse seeking a fair share of marital assets, I can help. I’m Beryl Thompson-McClary, and I handle high-net-worth divorce cases across Orange County, Florida. Call me at 1-888-640-2999 to schedule a consultation and discuss your specific circumstances.
How Florida Law Treats Business Ownership in Divorce
Florida follows the principle of equitable distribution, which means marital assets are divided fairly but not necessarily equally. Business ownership can be a complicated factor in divorce cases, particularly when the company has grown in value during the marriage or when both spouses have played a role in its success.
Under Florida Statutes §61.075, assets are classified as marital or non-marital:
- Marital Property: If a business was established during the marriage, it is typically considered marital property and subject to division. If one spouse started the business before the marriage but marital funds or efforts contributed to its growth, the increased value may be subject to division.
- Non-Marital Property: If the business was acquired before the marriage and remained separate—meaning no marital funds or efforts contributed to its growth—it may be classified as non-marital and remain with the original owner.
Even if a business is considered separate property, disputes may arise if a spouse claims contributions—financial or otherwise—helped increase its value. Florida courts consider factors such as personal involvement, reinvestment of marital assets, and overall contributions to determine what portion of the business, if any, is subject to division.
How Business Owners Can Protect Their Company in Divorce
If you own a business and want to prevent significant disruption during a high-net-worth divorce, there are several legal strategies to consider:
1. Prenuptial and Postnuptial Agreements
A well-drafted prenuptial or postnuptial agreement can clearly define business ownership and prevent it from becoming a contested issue in divorce. These agreements can specify that the business remains separate property or establish buyout terms in case of a divorce.
2. Keeping Business and Personal Finances Separate
Commingling personal and business funds can create challenges in determining the company’s classification as separate property. Keeping financial records distinct can strengthen the argument that the business is non-marital.
3. Establishing a Trust or Business Structure
Some business owners use trusts or legal structures, such as LLCs or corporations, to shield their business from direct ownership claims. However, these arrangements must be properly structured to avoid accusations of fraudulent transfers or improper asset protection tactics.
4. Fair Valuation of the Business
A business valuation conducted by an independent expert ensures that the company’s worth is accurately determined. If an undervaluation or overvaluation is suspected, forensic accountants may be brought in to review financial statements and cash flow.
5. Buyout Options
If a business is deemed marital property, one spouse may buy out the other’s share. This can be structured through lump-sum payments, asset exchanges, or structured settlements that allow continued business operations.
When a Spouse Has a Claim to the Business
For spouses who do not own the business but have a legitimate claim to its value, legal options exist to secure a fair distribution:
1. Seeking a Share of Business Growth
If the business increased in value due to marital contributions—whether financial, managerial, or through indirect support—the non-owner spouse may be entitled to a portion of that increased value.
2. Requesting Spousal Support Based on Business Income
If a business generates substantial income, it may impact spousal support (alimony) calculations. The Florida courts will examine the business owner’s income, profitability, and the spouse’s financial needs when determining alimony awards.
3. Asset Offsets in Property Division
Instead of directly sharing in business ownership, the non-owner spouse may negotiate for a larger portion of other marital assets, such as real estate, investment accounts, or retirement funds.
4. Uncovering Hidden Business Assets
In high-net-worth divorces, financial transparency is essential. If there is suspicion that the business owner is concealing income or assets, forensic accountants can investigate financial records, tax filings, and transactions to ensure an accurate valuation.
Legal Consequences of Business Division in Divorce
The division of a business in divorce can have far-reaching implications. Florida courts assess multiple factors to determine fair outcomes, including:
- Each spouse’s contribution to the business’s success
- The length of the marriage
- Whether the business was inherited or created from joint efforts
- Tax consequences of selling or dividing the business
- The financial impact of awarding one spouse a controlling interest
Under Florida law, businesses cannot simply be “split in half.” Courts aim for practical solutions that preserve business operations while ensuring fairness in the settlement. Depending on the circumstances, this may result in structured buyouts, asset reallocation, or alternative compensation arrangements.
FAQs About Protecting a Business in a High Net-Worth Florida Divorce
Can a spouse claim part of my business if they never worked there?
Yes, if marital funds were used to support the business or if their indirect contributions (such as handling household responsibilities to support the owner’s work) helped increase its value. Florida law considers non-financial contributions when determining equitable distribution.
How do Florida courts determine the value of a business in divorce?
Courts rely on business valuation experts who assess factors such as financial statements, assets, liabilities, and market conditions. A proper valuation is critical to ensure fair negotiations.
Can I protect my business by paying myself a lower salary?
Intentionally reducing business income to minimize asset division or alimony obligations can backfire. Courts examine historical income, tax filings, and financial statements to assess the true value of a business owner’s earnings.
What if my spouse and I co-own the business?
Co-owned businesses may require buyouts, restructuring, or continued shared ownership if both parties wish to remain involved. A clear business partnership agreement can help define exit strategies in case of divorce.
How can I protect my business before getting married?
A prenuptial agreement is one of the most effective ways to safeguard business assets. It can clarify business ownership and prevent disputes if divorce occurs.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For 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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