Florida business owners may have particular concerns to prioritize when they think about divorce. People who own small, closely held businesses may discover that their companies constitute the bulk of marital assets. They may be uncertain of how they can keep the business intact after the end of their marriage. After all, the financial effects of a divorce can linger long after the emotional and practical issues have been handled.
Successful businesses can be a major part of the property division process during divorce negotiations. Florida is an equitable distribution state, so each spouse will not necessarily receive 50% of the business, even if it was created after their marriage began. However, even when one spouse is the major owner of the business who contributes more time and energy, he or she should accustom themselves to the idea that the value of the business will be divided in some way. However, there are different ways to handle property division that can protect the business as an ongoing entity while still reflecting a fair settlement of the divorce financial issues. In some cases, one spouse can essentially buy out the other’s interest with other marital assets like real estate, retirement funds or investment accounts.
In other cases, there may not be enough value in the marital estate to provide for a business buy-out, but continuing the business as partners may also be an unworkable proposition. In these cases, an ongoing buyout process may be structured with payments coming in the form of spousal support.
There are a number of concerns that entrepreneurs may want to consider when divorcing, including the calculation of their income and their spouse’s role in the firm. A family law attorney might work with a divorcing business owner to achieve a fair settlement on property division, spousal support and other matters.