DIVORCE MAY MEAN SPLITTING UP YOUR BUSINESS
If you are getting a divorce and you and your spouse have a business that provides your income, you are going to face some substantial problems.
Many people have their own business which has developed during the marriage. These can be classified as (1) those who started the business together; (2) one spouse established the business and commenced development of the business prior to marriage but the business has prospered during the marriage and has involved both spouses, and; (3) those whose marriage occurs well after the development of the business and whose spouse has had nothing to do with the business during the marriage.
Florida is NOT a community property state. In Florida the law looks to “title” of assets and then determines whether there is a marital element to the particular asset. For instance, a business started during an active marriage and developed throughout the active marriage, even if wholly owned by only one spouse, will still be looked upon as a “marital asset” and valued as part and parcel of the marital estate, subject to distribution in a divorce. This is very different when a business is well established prior to marriage and a sole spouse owns the business, and the other spouse is not involved in the business. This type of asset may have little to no marital element and could be determined to be the non-marital asset of the owning spouse, and not subject to valuation in the marital estate.
You can see that these determinations are very “factually’ based and can be difficult in terms of argument, especially when large sums of money are at stake. Keep in mind that the accountant for the business is not going to be a valid person to act as a forensic valuation expert and you WILL need a good evaluation by an independent expert accountant. These are complex cases with a lot of money riding on the outcome. It is best to seek the advice of a well experienced marital attorney who has substantial experience working on business valuation cases.
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