For many small business owners in Florida, knowing how to navigate a divorce means protecting their business. A business is usually a marital asset in a Florida divorce. If you own a business, there are things that you can do in order to protect the asset and receive a fair distribution.
Documenting business assets in divorce
Protecting your right to fair property division in a divorce that involves a small business requires careful documentation of the value of the business. There may be a dispute of what the business is worth. Physical assets of the business or cash flow may only tell part of the story.
A party may rely on an accountant or business valuation expert in order to present evidence of the value of the business. Bookkeeping records can play a vital role in determining what net income a business venture truly receives. When income has recently changed or when it varies by season, compiling detailed records over a period of time may be critical.
Negotiating to protect a small business divorce asset
Once you have a fair valuation, protecting the business requires understanding the law and negotiating a divorce judgment effectively. It may be necessary to give up other marital assets in order to secure full ownership of the business going forward. The spouse retaining the business may negotiate for payments in order to buy the other spouse out. You should take special care to review the exact language in the judgment of divorce to ensure that it correctly reflects any negotiated agreement and that there isn’t unintended language or possible multiple interpretations that can complicate the case.
Create a plan for small business in divorce
It’s important to begin protecting your small business in divorce as soon as possible. Understanding the law can help you create an effective legal strategy to keep your business as an asset. Proper valuation, effective negotiations and careful judgment drafting all play a role in protecting a small business in divorce.