When a marriage ends, it can become complex if you and your spouse own a business together. This situation brings about a myriad of questions, as both of you have vested financial and emotional interests in the business.
As with many divorcing couples, you likely have questions about how your divorce will impact your business.
What happens to your shared business?
Florida is an equitable distribution state, which means courts divide marital assets, including businesses, in a fair but not necessarily equal manner. If you and your spouse own a business together, the court will determine the value of the business and divide it accordingly. Depending on the situation, you might continue running the business together, one spouse may buy out the other’s share or the court may order to sell the business and divide the proceeds.
Who can help with the business valuation process?
A certified business evaluator or a forensic accountant can help with the business valuation process. These professionals have the expertise to assess a business’s worth accurately. They can look at financial statements, evaluate assets and liabilities and analyze the market and industry conditions. The valuation process should be fair and transparent to ensure both parties receive an equitable share.
Can you exclude one spouse from the business?
Excluding a spouse from the business during the divorce process depends on the specifics of your situation and any existing agreements you may have. For example, if you have an existing prenuptial agreement that states one spouse forfeits their stakes in your business in the event of a divorce, then the courts will not look at the business as marital property.
By understanding how the process works and the importance of valuing the business accurately, you can navigate the divorce in a way that respects your financial interests and the integrity of the business. The goal is to achieve a fair outcome that enables both you and your spouse to move forward.