Business and Divorce in Florida
Orlando is a thriving hub for professionals, entrepreneurs, and business owners who have built successful enterprises. When divorce becomes a reality, one of the most pressing concerns is how business ownership will impact the division of assets. Business interests are often among the most valuable assets in a high net-worth divorce, and the way they are handled can significantly impact both spouses.
As an Orlando high net-worth divorce Attorney, I help business owners and their spouses protect their financial interests during divorce proceedings. My name is Beryl Thompson-McClary, and I represent clients throughout Orange County, Florida, ensuring their rights are protected when businesses are at stake. If you are facing a divorce that involves business ownership, call me at 1-888-640-2999 to schedule a consultation.
How Florida Law Treats Business Ownership in Divorce
Florida follows the principle of equitable distribution, meaning that marital assets are divided fairly but not necessarily equally. Whether a business is considered a marital asset depends on several factors, including when it was founded, how it was funded, and whether both spouses contributed to its success.
Under Florida Statutes §61.075, the court examines the classification of assets, distinguishing between marital and non-marital property:
- Marital Property: If the business was started during the marriage or if marital funds or efforts contributed to its growth, it is likely subject to equitable distribution.
- Non-Marital Property: If the business was owned before the marriage and remained separate, it may be excluded from asset division, provided no marital funds or labor enhanced its value.
Even if a business is considered separate property, the increase in its value during the marriage could be subject to division if the non-owning spouse played a role in its success or supported the owner financially.
Impact of Business Valuation in a High Net-Worth Divorce
One of the most significant challenges in dividing a business during a divorce is determining its value. The court may require an independent valuation to assess the fair market value, which involves:
- Examining Financial Records: Tax returns, profit and loss statements, and business assets.
- Evaluating Business Growth: The increase in revenue and assets during the marriage.
- Assessing Goodwill: This includes brand reputation, customer loyalty, and future earning potential.
- Considering Market Trends: Industry conditions that may impact the business’s valuation.
A proper valuation is critical because it determines how much the business owner may need to compensate the other spouse if they wish to retain full ownership.
Strategies for Business Owners During Divorce
If you are a business owner going through a divorce, there are several options to consider to protect your company:
- Buyout Agreements: Offering other assets or structured payments to retain full ownership.
- Pre- and Postnuptial Agreements: If an agreement specifies that the business remains separate property, it can prevent costly disputes.
- Trust or Business Structuring: Some business owners create trusts or legal structures to protect ownership interests.
- Deferred Compensation Agreements: If one spouse contributed significantly, the other may agree to deferred financial compensation instead of immediate division.
As an Orlando high net-worth divorce Attorney, I help business owners explore these options to keep their companies intact while ensuring a fair settlement.
When a Spouse Has a Claim to the Business
If your spouse owns a business and you believe you have a financial interest in it, there are several legal strategies to ensure you receive fair compensation:
- Claiming a Share of Business Growth: If the business grew due to marital contributions, you may be entitled to a portion of the increased value.
- Equitable Division of Other Assets: Instead of splitting business ownership, you may receive assets of comparable value, such as real estate or investment accounts.
- Spousal Support Considerations: If you played a role in supporting your spouse’s business efforts, alimony may be a factor.
- Ensuring Financial Transparency: A forensic accountant can analyze business records to uncover hidden income or undervalued assets.
I represent both business owners and spouses who have claims to business interests, ensuring a fair resolution for all parties involved.
Florida Statutes on Business and Divorce Settlements
Florida law provides specific guidelines on handling business assets in divorce:
- Florida Statutes §61.075: Defines marital vs. non-marital assets and outlines how courts determine equitable distribution.
- Florida Statutes §61.08: Covers alimony, which may be relevant if one spouse sacrificed their career to support the business owner.
- Florida Business and Professional Regulation Laws: Some licensed professionals, such as doctors and attorneys, may have restrictions on transferring business ownership in divorce cases.
Understanding these legal frameworks is essential for negotiating favorable divorce settlements that involve business assets.
FAQs About Business Ownership and Divorce Settlements in Florida
How does a business get divided in a Florida divorce?
If a business is classified as marital property, the court may order a buyout, asset exchange, or structured settlement. The goal is to divide assets equitably while preserving the business’s viability.
Can my spouse take half of my business in a divorce?
Not necessarily. If the business was owned before the marriage and remained separate, your spouse may not have a claim. However, if marital funds contributed to its growth, your spouse may be entitled to a portion of the increased value.
What if my spouse and I co-own a business?
Options include one spouse buying out the other, selling the business and splitting the proceeds, or continuing to co-own the business post-divorce under a structured agreement.
How do I prove my business is separate property?
Providing documentation that the business was established before marriage and that no marital funds or labor enhanced its value can help demonstrate that it remains separate property.
How can I protect my business from being divided in a divorce?
A prenuptial or postnuptial agreement is the most effective way to protect business assets. Structuring ownership through trusts or separate business entities can also provide protection.
Can I be forced to sell my business in a divorce?
It is rare for a court to force a business sale unless there are no viable options for equitable asset division. Courts typically seek alternatives that allow the business to remain intact.
What if my spouse is hiding business assets?
A forensic accountant can analyze financial records to uncover hidden assets, undervaluation, or financial manipulation that could impact the divorce settlement.
Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation
If your divorce involves business ownership, legal representation is critical to ensuring your rights and financial interests are protected. Whether you are a business owner seeking to retain control or a spouse seeking a fair share, I provide strategic legal solutions to achieve the best possible outcome. Call 1-888-640-2999 today to schedule a consultation and discuss your case.
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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