Divorce for Business Owners
A major aspect of any divorce in Florida is the division of property. State law requires divorcing spouses to divide all marital property in an equitable manner, which means that property distribution must be fair under the circumstances. Often, this involves dividing bank accounts, the family home, retirement accounts, and personal property. However, this process gets significantly more complicated when one or both spouses own a business.
If you or your spouse owns a business, you need a sophisticated Daytona Beach divorce lawyer from The Law Office of Jeffrey A. Klein, P.A. on your side. Dividing a business is a complicated process, and you want the right legal representation to protect your rights.
A Business as Marital Property
If both spouses own the business together, it should be obvious that the business will be marital property. When one spouse owns a business without the other, however, they might assume the business should be theirs to keep. This is not the case, even if the spouse owned the company before they got married.
Any business interests acquired or increased in value of the business during the course of the marriage will be considered to be marital property. This means that these interests are vulnerable to equitable property division.
Valuation of the Business Interests
The first step of the process is to determine the value of the business interests. If one or both spouses own the entire company, you need to determine the overall value of the company. If a spouse owns part of a business with other owners, you need to determine the value of the entire business, as well as the percentage of their ownership.
There are different methods of business valuation, and the spouses should agree on which method to use. This can be negotiated with the help of an experienced divorce attorney who regularly represents business owners.
How to Divide the Business Interests
How you will divide the business depends on different factors, including whether one spouse wants to fully protect their ownership, whether there is a buy-sell agreement in place, and more. Some options include:
- One spouse retains all ownership, and the other spouse gets a greater portion of the rest of the marital property in exchange, such as the family home
- The spouses sell the business and divide the proceeds down the middle
- The spouses continue working together (if they are able to do so), and each retains their portion of ownership interests
There are many solutions for dividing business interests in a divorce, and it is critical that you understand which option is the best under your circumstances.
Seek Help from a Daytona Beach Divorce Attorney
Divorce can always be challenging, but it becomes even more so when you have complex property and assets or significant wealth. If a business is involved in your divorce, you want The Law Office of Jeffrey A. Klein on your side. Our lawyers have experience dividing complex assets, and we stand up for our clients’ rights. Call 386-252-3061 or contact us onlinefor more information today.
We are always readily available to answer your questions.
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We are a husband and wife team that genuinely cares about our clients.