Posts

,

Can a Business Stay Intact After a Florida Divorce?

Can a Business Stay Intact After a Florida Divorce?

Protecting Business Interests During High Net-Worth Divorce in Orlando

Orlando is home to a thriving business community, with professionals, entrepreneurs, and executives building successful companies across various industries. When a high net-worth divorce occurs, one of the most pressing concerns is what happens to a business that one or both spouses own. Whether you are a business owner looking to protect your company or a spouse seeking a fair division of marital assets, these cases require strategic legal representation.

As an Orlando high net-worth divorce Attorney, I have helped business owners and their spouses resolve complex property division disputes while ensuring financial stability. I am Beryl Thompson-McClary, and I represent clients throughout Orange County, Florida, handling intricate high-asset divorces where businesses are involved. Call 1-888-640-2999 to schedule a consultation and discuss your legal options.

Understanding Business Ownership in Florida Divorce Cases

Florida is an equitable distribution state, meaning marital assets are divided fairly but not necessarily equally. Under Florida Statutes §61.075, the court determines whether a business is a marital or non-marital asset and how it should be divided.

  • Marital Property: If a business was started or acquired during the marriage, it is generally considered marital property, subject to division.
  • Non-Marital Property: If a business was established before the marriage and remained separate, it may not be subject to division. However, any increase in its value during the marriage could be considered a marital asset if one spouse contributed to its growth.

The classification of a business as marital or non-marital can significantly impact whether it remains intact after divorce. Determining its status requires a careful review of financial records, ownership agreements, and contributions made by both spouses.

How Business Owners Can Protect Their Companies in Divorce

For business owners seeking to keep their companies intact, several legal strategies can help:

  • Prenuptial and Postnuptial Agreements: These agreements can clarify business ownership and protect companies from being considered marital assets.
  • Buyout Arrangements: One spouse may negotiate a buyout to retain full control of the business.
  • Business Valuation: Obtaining an accurate valuation ensures that any division or buyout reflects the true worth of the business.
  • Structuring Compensation Properly: Adjusting the way income is paid to the business owner may affect how much of the company is considered marital property.
  • Operating Agreements and Trusts: Business owners who have agreements in place restricting ownership to specific individuals may be able to protect their interests.

If you own a business and want to ensure it remains intact after your divorce, I can help you explore legal options tailored to your situation.

When a Spouse May Have a Right to Business Assets

If you are the spouse of a business owner, you may have a rightful claim to part of the business’s value, particularly if:

  • You contributed financially to the company.
  • You played a role in its operations, even informally.
  • Marital funds were used to grow the business.
  • The business increased in value during the marriage.

Florida law provides that even if a business was started before marriage, any appreciation in its value during the marriage due to either spouse’s contributions may be considered marital property. This means a spouse may be entitled to part of the business’s value, even if they were not directly involved in its daily operations.

Business Valuation in Florida Divorce Cases

Before determining whether a business can stay intact, an accurate valuation is required. Florida courts rely on professional appraisals to determine a business’s fair market value. Valuation methods include:

  • Income Approach: Based on projected future earnings.
  • Asset Approach: Focuses on the company’s assets and liabilities.
  • Market Approach: Compares the business to similar companies that have been sold.

If the business is subject to division, the valuation will impact whether one spouse can buy out the other, whether alternative assets will be exchanged, or whether the business may need to be sold.

Can a Spouse Be Forced to Sell Their Business in a Florida Divorce?

In some cases, a business owner may be required to sell the business or a portion of their ownership interest to satisfy a property division settlement. This can happen when:

  • There are insufficient other assets to offset the value of the business.
  • The business is jointly owned, and one spouse does not want to sell their interest.
  • Financial disputes prevent a fair buyout agreement.

However, selling a business is typically a last resort. Courts generally prefer solutions that allow the company to continue operating, as long as both parties receive a fair share of marital assets.

Florida Statutory Considerations for Business Division

Under Florida Statutes §61.075, the court considers various factors when dividing business assets, including:

  • The contribution of each spouse to the business’s success.
  • The economic circumstances of both spouses after divorce.
  • Any agreements, such as prenuptial or postnuptial contracts.
  • The length of the marriage and whether the business was established before or during the marriage.
  • Each spouse’s earning capacity and financial need.

If the business remains intact, the court ensures that the non-owner spouse receives a fair financial settlement through other assets, structured payments, or spousal support.

FAQs About Business Ownership and Divorce in Florida

How does a court determine if a business is marital property?

The court reviews how and when the business was acquired, financial contributions from both spouses, and any appreciation in value during the marriage. Even if one spouse solely owned the business, if marital funds were used or if the other spouse contributed to its success, it may be considered marital property.

Can I prevent my spouse from claiming part of my business in a divorce?

If the business was established before marriage and no marital assets were used to fund it, you may be able to keep it separate. Prenuptial or postnuptial agreements and properly structured business agreements can help safeguard ownership.

What happens if both spouses own the business together?

Options include continuing co-ownership, one spouse buying out the other, or selling the business and splitting the proceeds. The best option depends on the relationship between the spouses and the financial feasibility of a buyout.

What if my spouse is hiding business assets?

If you suspect your spouse is concealing business income or undervaluing assets, forensic accounting can help uncover hidden finances. Courts take financial dishonesty seriously and may impose penalties for failing to disclose assets.

Should I negotiate a settlement or go to trial over business division?

Settlement negotiations often lead to better outcomes, as they allow for customized solutions. However, if an agreement cannot be reached, litigation may be necessary to ensure a fair division of assets.

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

If your divorce involves a business, you need experienced legal guidance to protect your financial future. Whether you want to keep your business intact or ensure you receive your fair share, I am here to help. Call 1-888-640-2999 to schedule a consultation and discuss your case today.

Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
Google Business Profile
Directions

/by
,

Can a Business Stay Intact After a Florida Divorce?

Can a Business Stay Intact After a Florida Divorce?

High Net-Worth Divorce in Orlando and Business Ownership

Orlando is home to many successful professionals and business owners who have built substantial assets, including companies that they want to protect. When divorce enters the picture, one of the most pressing concerns for business owners is whether the company can remain intact. As an Orlando high net-worth divorce Attorney, I help clients on both sides of this issue—those who want to safeguard their business and those who seek a fair division of marital assets.

I’m Beryl Thompson-McClary, and I handle complex divorce cases throughout Orange County, Florida. If you own a business or your spouse does, you need legal representation that understands the financial and legal implications of business division during a high net-worth divorce. Call me at 1-888-640-2999 to schedule a consultation and discuss how to protect your interests.

How Florida Law Handles Business Ownership in Divorce

A business is often one of the most valuable assets in a divorce. Whether it remains intact depends on several factors, including ownership structure, marital contributions, and pre-existing agreements. Florida law categorizes property in divorce cases as either marital or non-marital under Florida Statutes §61.075. Understanding this distinction is crucial when determining whether a business remains with one spouse or is subject to division.

  • Marital Property: If the business was established during the marriage or if marital funds contributed to its growth, it is likely subject to equitable distribution.
  • Non-Marital Property: If the business was owned before the marriage and no marital funds or efforts enhanced its value, it may be considered separate property.

The court examines whether the business increased in value during the marriage and if both spouses contributed financially or through indirect support. Even if only one spouse was actively involved in the business, the other may still have a claim.

Can the Business Stay Intact? Exploring Both Sides

When the Business Owner Wants to Keep the Company

If you own a business and want to ensure its continuity after divorce, there are legal strategies to minimize disruption:

  • Buyout Agreements: Offering the other spouse a financial settlement or other assets of equal value to retain full control.
  • Prenuptial or Postnuptial Agreements: If you have an agreement in place that designates the business as separate property, it may protect the company from division.
  • Structuring Compensation Differently: Adjusting how you pay yourself (e.g., salary vs. reinvesting profits) can influence how much of the business is considered marital property.
  • Trusts and Business Structuring: Some business owners have trust structures in place to protect ownership interests.
  • Third-Party Valuations: A professional business valuation can ensure the correct assessment of value, preventing overpayment in a buyout.

When the Non-Business Owner Spouse Has a Claim

If your spouse owns a business and you believe you have a right to a share, there are ways to secure your financial interests:

  • Seeking Your Share of Business Value Growth: If the business grew significantly during the marriage due to joint efforts or financial contributions, you may be entitled to part of its value.
  • Equitable Division of Assets: If the business is awarded to your spouse, you may receive other assets, such as real estate, investments, or a structured settlement.
  • Income-Based Spousal Support: If you supported your spouse in their career, you may be eligible for alimony that reflects the business’s income.
  • Forensic Accounting: If you suspect hidden income or undervaluation of the business, a forensic accountant can uncover the full financial picture.

Florida Statutes and Business Valuation

Business valuation is one of the most contentious aspects of a high net-worth divorce in Orlando. Under Florida law, the fair market value of a business must be determined before it can be divided. This process involves:

  • Assessing Business Assets and Liabilities: Evaluating financial records, inventory, equipment, and real estate holdings.
  • Determining Revenue Streams: Reviewing profit margins, cash flow, and industry trends to establish a fair value.
  • Considering Intangible Value: Including goodwill, brand reputation, and client relationships in the valuation.
  • Tax Implications: Understanding the tax consequences of asset division, buyouts, and business restructuring post-divorce.

As an experienced Orlando high net-worth divorce Attorney, I work closely with financial experts to ensure that business valuations are accurate and fair.

Protecting Your Business From Divorce Disputes

If you are a business owner contemplating divorce, taking proactive steps can help protect your company from lengthy disputes:

  • Secure a Prenuptial or Postnuptial Agreement: Clearly defining business ownership before marriage or during the marriage can prevent conflicts later.
  • Maintain Separate Finances: Avoid using marital funds for business expenses whenever possible.
  • Document Business Contributions: Keeping records of capital investments, ownership percentages, and employment roles can clarify property claims.
  • Plan for Succession: If you co-own a business with partners, ensuring a succession plan protects the company in case of divorce-related ownership changes.

FAQs About Business Ownership in High Net-Worth Florida Divorces

How is a business divided in a Florida divorce?

Florida follows equitable distribution, meaning a business may not necessarily be split 50/50. Instead, the court evaluates how the business was acquired, its growth during the marriage, and each spouse’s contributions. If the business is marital property, one spouse may buy out the other’s interest, or other assets may be exchanged to offset the business’s value.

What if my spouse and I co-own a business?

If both spouses actively run the business, options include continuing to operate it together, selling it and dividing the proceeds, or one spouse buying out the other’s interest. In some cases, a partnership agreement or business restructuring can help clarify ownership rights.

Can my spouse take half of my business in a divorce?

Not necessarily. If the business was owned before the marriage and remained separate property, it may not be subject to division. However, if the business grew in value due to marital efforts, your spouse may be entitled to a portion of that increased value.

How does the court determine the value of a business?

The court typically relies on professional appraisals, financial statements, and expert testimony to establish a fair market value. A forensic accountant may analyze business earnings, expenses, and market conditions to determine an accurate valuation.

What if my spouse tries to undervalue the business?

If there is suspicion that a spouse is hiding assets or undervaluing the business, a forensic accountant can investigate financial records, tax returns, and other documentation to uncover discrepancies. The court may also consider past earnings and industry benchmarks to ensure an accurate valuation.

Can I keep my business intact after my divorce?

Yes, but it often requires negotiating a settlement that compensates the other spouse for their share. This could involve a buyout, adjusting other asset distributions, or agreeing to structured payments over time.

Should I consult a high net-worth divorce attorney in Orlando if my business is at risk?

Absolutely. Business ownership in divorce cases is complex and requires skilled legal representation. Whether you are the business owner or the spouse seeking a fair share, legal guidance ensures your rights and financial interests are protected.

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

If you are going through a high net-worth divorce involving a business, you need legal counsel who understands Florida law and financial complexities. Call me at 1-888-640-2999 to schedule a consultation and discuss your case. Whether you want to keep your business intact or secure your fair share, I will provide the strong representation you need.

/by