When spouses divorce, they must often divide up personal property and assets. The same thing for divorce is true for family businesses in Florida. The U.S. Census Bureau reported that nearly four million businesses throughout the country are owned by spouses.
Reports indicate that certain job functions that the spouses performed under the business could determine what direction spouses could take in the event of a divorce. If both spouses have the same job title, such as a doctor, then they may be required to divide the business. One woman was forced to pay her ex-husband $800,000 to buy him out of their business.
One of the best recommendations for spouses is to have the business valued and then have the other spouse buy it out if they still want to operate it. A buyout can occur when spouses trade the business value for marital assets. Spouses can also sell the business to a third party and divide up the proceeds.
Going through divorce can be a financial hurdle when there are a number of marital assets at stake. Some complications can be avoided by having prenups in place which outline each spouse’s expectations throughout the marriage and what happens financially when the marriage ends. It is also recommended that spouses do not combine business and personal assets. An experienced divorce attorney in Florida can help navigate through the court system. By each seeking legal advice independent of one another, spouses can potentially increase the chances of achieving a favorable outcome.
Source: CBS News, “Who holds onto the family business when couples divorce?“, S.Z. Berg, Feb. 10, 2015