When a marriage dissolves, dividing property becomes especially complex if a business is involved. You may wonder who keeps ownership and how courts make that decision. In Florida, courts use “equitable distribution” to handle business assets. This means judges aim for a fair outcome based on the details of each case, not an automatic fifty-fifty split.
Understanding marital vs. non-marital assets
Not every asset qualifies for division in a divorce. If you started a business before the marriage and kept it separate, the court may treat it as non-marital property. However, if the business grew during the marriage or both spouses contributed, the court may view it as marital. Even if your spouse handled household responsibilities, that contribution can affect how the court divides the business. The court also looks at whether either of you used marital funds to support or expand the business.
How businesses are evaluated
Courts rely on a financial professional to evaluate the business. This person examines income, debts, assets, and market value. If you or your spouse co-own the business with others, the court focuses on the share that belongs to the marriage. Accurate valuation helps the court divide the asset fairly. Depending on the complexity of the business, the evaluation process may include appraisals, tax returns, and market comparisons.
Possible outcomes in property division
Sometimes, one spouse buys the other’s share in the business. In other cases, the spouses sell the business and divide the profits. A few couples agree to keep working together and co-own it. Courts aim for a fair result, not necessarily an equal one. Judges consider income, marital contributions, and future financial needs when dividing the business. They also look at which spouse has the skills or experience to continue running the business.
Divorce can stir up emotions, but you need to stay practical when dividing a business. Hiding assets or inflating debts usually backfires. Judges take issue with dishonest tactics. If both sides act transparently and stay focused on fairness, the process usually runs more smoothly and costs less. A cooperative attitude can reduce legal fees and speed up the outcome.
