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.
