Getting a divorce can be extremely stressful. Dividing up property and assets can be even more stressful. As a matter of fact, this alone can make people stay in a bad marriage. There is some good news: If you or your spouse own a company, the divorce process doesn’t have to be so painful.
To decide how a business is to be divided, start with first things first. There will be distinct “piles” when you are divorcing: his, hers and theirs. The “his and hers” piles are obviously what you and your spouse brought into the marriage or inheritances. These will be kept separate. The “theirs” pile will be everything else that was acquired during the marriage and will be equitably distributed. This means that the distribution will be fair.
Florida is a community property state, so the path of choice will possibly be a 50/50 split. There also may be an uneven split to make things equitable.
You need to have an analysis done on your business overall. A business started after marriage will be considered marital property and will be in the “theirs” pile. It doesn’t matter whose name is on the sign or on the paperwork when it was purchased; it is still marital property.
The gross income of the company may have nothing to do with its actual value. Experts will look into the assets, the accounts receivable, and the marketability of the company to determine its value.
Getting divorced can be a convoluted process. You may want to continue your research if you own a lot of assets that may be marital property. You may also want to talk to a legal representative who knows the laws of the state of Florida and can offer suggestions that may help.
Source: Credit.com, “What Happens to My Business in a Divorce?,” Rebecca Zung, Aug. 07, 2015
