How Will My Business Be Divided In A Divorce?

How Will My Business Be Divided In A Divorce?Filing for divorce can be overwhelming, especially where there are important assets involved. Luckily, you do not have to navigate this process alone, the HAWM Law lawyers can help you dissolve your marriage legally and protect your assets so that you can move on with your life. For entrepreneurs, a divorce can mean losing a significant portion of their livelihood. When a business is involved in a divorce case, it can be complicated to determine how it will be divided between spouses. We will zealously advocate on your behalf, ensuring that your interests are protected and that you are awarded your fair share of all assets.

What is Equitable Distribution?

Florida is an equitable distribution state, which means that marital assets and liabilities are divided fairly but not necessarily equally. This means that the court will consider several factors to determine how the business will be divided. These factors include:

  • Contribution To The Business: The court will look at how much each spouse contributed to the business during the marriage. This includes financial contributions, as well as non-financial contributions such as sweat equity and time spent managing the business.
  • Value Of The Business: The court will also consider the value of the business. This may require a business valuation by an expert, who will evaluate the business’s assets, liabilities, and potential for future growth.
  • Length Of The Marriage: The length of the marriage is also a factor that the court will consider when dividing the business. If the business was started before the marriage, the court may only consider the increase in value during the marriage.
  • Economic Circumstances: The court will also consider the economic circumstances of each spouse, including their income, assets, and liabilities.

Our family law attorneys are focused on efficiently and effectively preparing clients for the most difficult circumstances. The attorneys at HAWM law have experience dealing with an array of family law matters and can prepare the necessary and often unique strategy and tools that your family may require.

Based on these factors, the court may order one of the following methods to divide the business:

  • Buyout: If one spouse is awarded the business, they may need to buy out the other spouse’s share. This can be done by negotiating a fair price or by the court ordering a valuation of the business to determine its value.
  • Sale: The court may order the business to be sold and the proceeds to be divided between the spouses. This may be the best option if the business is not profitable or if the spouses cannot agree on a fair value.
  • Co-Ownership: In some cases, the court may order the spouses to continue co-owning the business. This can be a complex arrangement, as the spouses will need to continue working together to manage the business.

It is important to note that the court may also consider other factors that are unique to the specific case. For example, if one spouse can prove that the other spouse was using the business to hide assets, the court may award a larger share of the business to the innocent spouse.

Let HAWM Law Help Navigate Your Divorce

Going through a divorce can make it feel like your whole world is crumbling; the last thing you need to worry about is having your hard-earned business taken out from under you. Having a solid ally in your corner, advocating for you, and ensuring that your interests are protected, can make all the difference in being able to make it through this difficult time and on with your life. That is where HAWM Law comes in, to fight for you and your interests. If you are facing a divorce that involves a business, contact us today to schedule a consultation.

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