Protecting Your Business in a Divorce
Business owners work hard for everything they have. Whether you are just getting started or you own a well-established business, the thought of having to give up any of what you have put so much of your soul into is likely unfathomable. If you are getting a divorce, you are likely wondering what you can do to protect it, giving your business the chance to continue to thrive, despite the state of your marriage. Continue reading to learn more about what you can do.
Divorcing in an Equitable Distribution State
Florida is an equitable distribution state, which means that all marital property will be divided and distributed fairly, though not necessarily equally. If you started your business during the marriage, it will likely be considered marital property. If you started it before you said, “I do,” it may be a non-marital asset. However, your spouse will likely be entitled to the appreciation of the business during the marriage.
If a judge determines that your business is marital property, there are a few ways in which it may be divided:
- Sell the business and divide the proceeds fairly
- Value the business and allow one spouse to buy out the other
- Co-own and operate the business
If you are passionate about your business, selling will certainly not seem like a viable option to you. However, if you have the funds to buy out your spouse, this option will be the best and most effective way to keep and protect your business. It will also ensure that you no longer have to work with your spouse, assuming you both had an active role in running it.
If you have an amicable enough relationship, you may want to hold off on buying out your spouse, especially if you are both skilled in operating it and believe the business would benefit from your continued collaboration. If you change your mind later on, you can always buy out your former spouse’s share of the business later on down the road.
Speak to an Experienced Divorce Attorney About Your Case Today!
Ending a marriage can be difficult, especially when you have important assets, such as a business, you wish to protect. At Dale L. Bernstein, Chartered Law Office, our family law team is backed by more than three decades of experience and a history of successful results. When you choose to work with us, you can rest assured your case will be in good hands.
Reach out to our law office today at (727) 312-1112 to schedule a consultation.