What Are the Implications of Liquidating Shared Business Assets During a Divorce in Central Florida?

Could Your Business Assets Be Liquidated in a Florida Divorce?

When spouses divorce in Florida, their shared business assets are considered marital assets and are subject to division. If you own business assets, you could lose a considerable amount in a contested Florida divorce. However, an Orlando divorce attorney will help you keep and protect what is legally and rightfully yours.

For a business to remain profitable, a business owner’s unique needs must be considered in the divorce process. A Central Florida divorce lawyer can develop an effective legal strategy to protect your business assets during and after a divorce.

If you own a Florida business, you may have to choose between selling your business or buying out your spouse when you divorce. When you liquidate shared business assets in a divorce, you sell the assets jointly owned by the spouses and divide the proceeds in the divorce settlement.

Which Business Assets Are Subject to Division?

Whether business assets are considered marital property or personal property in a Florida divorce proceeding depends on several factors, such as when you acquired the assets, the contributions made to the business by both spouses, and how the business used marital funds.

Under Florida law, business assets acquired during a marriage are marital property, with only rare exceptions. Any assets owned before the marriage are personal property. The liquidation of your business assets may not be necessary, but divorcing spouses must receive assets of equal value unless they voluntarily make a different agreement.

Should You Have Your Business Valuated?

You must accurately valuate your business to ensure a fair division of assets. Valuating a business is complicated, and you may use one of several methods. Your Orlando divorce attorney can suggest the best way to valuate your business for the purposes of your divorce.

One way to valuate a business is the income method, which calculates future earnings potential. The income method considers profits, growth projections, and market trends.

Another approach, the asset method, focuses on assets such as equipment, intellectual property, and patents. Other valuation methods may be appropriate in some instances. Your lawyer will review your financial records and work with financial experts to determine your business’s value.

Should You Buy Out Your Spouse?

When divorcing spouses share the ownership of a business, the division of marital assets requires you to plan carefully to ensure that you adequately protect your business.

One spouse may buy out the other to retain business ownership and avoid disruptions. If you have the cash, you can purchase your spouse’s interest in your business.

You may have to liquidate other assets or relinquish personal assets to obtain the cash to buy your spouse’s share of the business. You may make a lump-sum payment or arrange to make payments over time.

What Are Divorcing Spouses Required to Disclose?

In Florida, divorcing spouses must make complete financial disclosures to the court within forty-five days of the initial divorce filing. Disclosures must include their expenses, liabilities, assets, and incomes to ensure a proper division of assets and an appropriate amount of child support.

A Florida court may need to see pay stubs, tax returns, W-2 forms, 1099s, bank statements, credit card statements, insurance policies, titles, deeds, and any other documents related to the couple’s assets and debts. In some cases, spouses try to hide assets to avoid dividing them.

Spouses may overstate debts, underreport income, or transfer property temporarily to someone else. If you believe your spouse is hiding assets, tell your Central Florida divorce lawyer, who will work with financial experts to discover hidden assets. The failure to submit a complete and accurate financial disclosure may trigger substantial legal consequences.

How Will Your Lawyer Protect What is Yours?

Businesses, properties, art, jewelry, or even a beloved family pet may trigger a marital property dispute. When you divorce in Central Florida, you must work with an Orlando divorce lawyer who can ensure that:

1. Every asset the spouses own is accurately identified as personal or marital property.
2. Each asset is accurately appraised.
3. Your best interests are protected during the divorce process.

If you own a business, your attorney may recommend making a settlement offer early in the divorce process. Base your offer on the facts and the law. Don’t presume your spouse will accept a first offer. During your negotiations, your lawyer will help you assess costs, benefits, and risks.

What Else Should You Know About Divorcing in Central Florida?

To divorce in this state, you must meet requirements including residency, filing in the right county, and proving your marriage is irrevocably broken. One spouse must be a resident of Florida for at least six months before filing. The filing fee varies by county.

When you file for divorce, you must fill out a “Petition for Dissolution of Marriage” in the circuit court in the county where you or your spouse reside. Your Florida divorce attorney can help you prepare the petition and file it with the court on your behalf.

The court can sometimes finalize an uncontested divorce in Florida in as little as four weeks, but if your divorce is contested and your assets are substantial, the divorce process may take as long as two years.

Let Attorney Erin Morse Advise and Represent You

If you’re divorcing your spouse, or if your spouse is divorcing you, reach out at once to the award-winning family law team at the Law Office of Erin Morse. Our firm proudly serves clients throughout Central Florida, including Orlando and adjacent jurisdictions.

We handle divorces, child custody and child support cases, paternity claims, and prenuptial agreements. We also offer estate planning services and advice to Central Florida families. We have built a reputation for legal excellence and extraordinary client service.

When you divorce in Florida, you must have an attorney who can fight aggressively for your interests and on your behalf. You’ll find that attorney at the Law Office of Erin Morse. Learn more about your rights or begin the legal process now and schedule a consultation with one of our attorneys by calling the Law Office of Erin Morse at 407-900-7451.