As a Florida business owner, if you are planning to get married or contemplating divorce, it is important to think about how separation can impact your company. Being an entrepreneur makes your situation different from most separation cases. Ideally, you could rely on a prenuptial and postnuptial contract to protect your company.
Your income is always changing, and you may not know how to approach various aspects of your divorce case. Besides needing to figure out child support and alimony, you must also consider how equitable distribution may affect your company. Here are some things you should keep in mind.
Is your business a personal or joint asset?
The courts must determine if your company is a jointly owned asset. There are factors that could cause your company to be classified as marital property instead of separate property even if you started it before your marriage. Because things can become complicated when trying to figure out what type of property your company is, you should keep track of all business expenses.
Your company assets might be subject to the rules of equitable distribution if you used marital funds to maintain it in any way. For example, if you took $50,000 of your combined household income to renovate property to support your company’s growth, your ex-partner can receive half of that $50,000 investment and a portion of the profits that your organization had from that renovation in the divorce settlement.
How much is your company worth?
You may not believe your company is worth as much as your soon-to-be ex-spouse does. Regardless of what you may feel your organization’s value is, it is necessary for you to get an expert valuation, and you must do this before the courts can determine the correct distribution of marital assets. Everything from the company’s structure to partnership agreements can affect the results.
Keep in mind that some agreements, such as prenuptial and postnuptial contracts, can take precedence over certain equitable distribution rules. Divorces that involve business assets are often complicated and require expert legal intervention.