What Happens to Small Businesses During a Divorce in Florida?

Protecting Your Business and Financial Future in Orlando

Orlando’s dynamic community is home to countless small business owners and professionals who drive the local economy. For high net-worth individuals, their business often represents not just financial security but a lifelong investment of time, effort, and dreams. When divorce becomes a reality, the fate of that business is a critical issue. My name is Beryl Thompson-McClary, and I am an experienced high net-worth divorce attorney in Orlando. I have guided business owners, their spouses, and other professionals through the complexities of divorce in Orange County, Florida.

If your divorce involves a small business, you need an advocate who understands how to protect your financial future. Whether you’re the business owner or the spouse, I’m here to help you. Call me for an initial consultation at 1-888-640-2999 so we can discuss your situation in detail.


Small Businesses in Florida Divorce Cases

When small businesses become part of divorce proceedings, the stakes are often high. Under Florida law, marital property is subject to equitable distribution, meaning it will be divided fairly between both spouses. However, fairness doesn’t always mean equal. Businesses that were started or significantly grown during the marriage are usually considered marital assets, even if only one spouse was directly involved.

How Florida Statutes Define Marital Assets

Florida Statute §61.075 governs the division of marital property. It defines marital assets as those acquired during the marriage, which typically include:

  • Businesses or professional practices started during the marriage
  • The increased value of a business due to efforts made during the marriage
  • Income generated by the business that was commingled with marital funds

Understanding whether a business is marital or non-marital property is critical. Non-marital property, such as a business started before the marriage, can remain separate, but any increase in its value due to marital efforts could still be subject to division.


What Happens to the Business?

When a small business is part of a high net-worth divorce, there are generally three outcomes:

1. One Spouse Keeps the Business

In many cases, the spouse who is more actively involved in the business will retain ownership. This often involves buying out the other spouse’s interest. The buyout value is determined by appraising the business, which requires an accurate and thorough valuation. I work closely with financial experts to ensure all assets are accounted for and valuations are fair.

2. The Business Is Sold

If neither spouse can afford a buyout or if they can’t agree on terms, selling the business and dividing the proceeds may be the only option. This approach can be challenging for both parties, particularly when the business has sentimental value or is the family’s primary source of income.

3. The Business Is Co-Owned

While less common, some couples choose to co-own the business post-divorce. This arrangement requires strong communication and trust, as well as clear legal agreements to prevent future conflicts. I’ll help you weigh this option carefully and draft agreements to protect your interests.


Key Issues in Business Division

Valuation

A proper business valuation is essential for determining its worth. This process involves:

  • Examining financial statements
  • Assessing goodwill and intangible assets
  • Reviewing debts and liabilities
  • Considering market conditions and future earning potential

An inaccurate valuation can lead to significant financial losses. That’s why I collaborate with trusted forensic accountants and financial analysts to ensure all factors are considered.

Income and Support Calculations

When a business owner’s income is tied to the company, it complicates calculations for spousal and child support. Courts will review the business’s profits, distributions, and retained earnings to determine an accurate picture of income. As your attorney, I’ll work to ensure that these calculations reflect the true financial situation.

Protecting Confidential Information

High net-worth divorce cases often involve sensitive business information. Protecting trade secrets, client lists, and proprietary data is critical. I ensure that confidentiality agreements are in place throughout the proceedings to safeguard your business.


How We Help Both Sides of the Issue

Whether you’re the business owner or the spouse, you deserve fair treatment under the law. Here’s how I can help:

For Business Owners

  • Protecting the business from being unfairly devalued or sold
  • Ensuring confidentiality throughout the divorce process
  • Negotiating buyout terms that allow you to retain ownership

For Spouses

  • Securing an accurate valuation to reflect the true worth of the business
  • Fighting for a fair share of the marital property
  • Ensuring income calculations for support payments are accurate

Divorce is a challenging time, but with the right legal strategy, you can protect what matters most to you. Call me at 1-888-640-2999 for an initial consultation to discuss your specific needs.


FAQs About Small Businesses and Divorce in Florida

How is a business valued during a Florida divorce?

Business valuation is a detailed process that examines assets, liabilities, and earning potential. It often involves forensic accountants who assess financial statements, tangible assets, and intangible factors like goodwill. The goal is to determine a fair market value that reflects the business’s worth at the time of the divorce. As your attorney, I’ll ensure this valuation process is thorough and equitable.

Is my business considered marital property if I started it before the marriage?

A business started before the marriage is typically considered non-marital property. However, if the business grew in value due to efforts made during the marriage or if marital funds were used to support it, the increased value may be classified as marital property. I’ll work to identify and differentiate these aspects to protect your interests.

Can I prevent my spouse from claiming part of my business?

While you can’t completely prevent claims, there are steps you can take to protect your business, such as drafting a prenuptial or postnuptial agreement. If no agreement exists, I’ll help you argue for a fair division based on your contributions and the nature of the business.

What happens to a professional practice during a divorce?

Professional practices, like those owned by doctors, dentists, or lawyers, are often treated similarly to other businesses. Their valuation includes tangible assets (e.g., equipment) and intangible assets (e.g., goodwill). Florida law protects professional licenses from being transferred, but the practice’s value may still be subject to division.

Can a business be sold during a divorce?

Yes, selling the business is one option, particularly if neither spouse can afford a buyout or if both agree it’s the best solution. The proceeds are then divided according to Florida’s equitable distribution laws. I’ll help you explore all options to find the one that best suits your situation.

What if my spouse is trying to hide business assets?

Hidden assets are a significant concern in high net-worth divorces. Forensic accountants can uncover undisclosed income, fraudulent transactions, or undervalued assets. I’ll ensure a thorough investigation to protect your rights and secure a fair outcome.

How are income and support calculated for a business owner?

Income calculations for business owners can be complex, as they must account for more than just salary. Courts often review profits, distributions, and retained earnings to determine true income. I’ll work to ensure that support calculations are accurate and equitable.

Can we co-own the business after the divorce?

While possible, co-ownership requires clear legal agreements and a strong level of trust. This option is less common but can work if both parties are committed to the business’s success. I’ll help you evaluate whether this arrangement is viable and draft the necessary agreements to protect your interests.

What is the role of a prenuptial agreement in protecting a business?

A prenuptial agreement can clarify ownership of a business and protect it from being divided during divorce. If you have a prenuptial or postnuptial agreement, I’ll ensure it’s enforced to safeguard your business.

Should I hire an attorney if my divorce involves a business?

Absolutely. High net-worth divorces involving businesses are legally and financially complex. As an Orlando high net-worth divorce attorney, I’ll guide you through every step, ensuring your rights and assets are protected. Call me at 1-888-640-2999 for personalized advice.


Call Attorney Beryl Thompson-McClary Today

If your divorce involves a small business, the stakes are high. Whether you’re protecting your business or ensuring you receive your fair share, I’m here to help. Contact me, Beryl Thompson-McClary, at 1-888-640-2999 for your initial consultation. Together, we’ll create a strategy that supports your financial future.

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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