How A Fort Lauderdale Divorce Impacts Family-Owned Businesses
Filing for divorce in the Broward County Family Court is never easy. The situation can become even more complex and contentious when a family-owned business is involved.
In Florida, family businesses are considered marital property if they were started or grew significantly during the marriage. This means it could be subject to equitable division in divorce proceedings, even if only one spouse previously ran it. Our Fort Lauderdale divorce lawyer explains key factors that impact these cases and how to protect your rights as an owner.
Key Factors That Impact Division Of Family-Owned Businesses In Fort Lauderdale Divorce Proceedings
The Pew Research Center reports that Florida has nearly 250,000 family-owned businesses, more than any other state. Regardless of size, this type of business often provides financial security for current and future generations and represents years of hard work and investment.
If you own or have a share in a Florida family-owned business, be aware that it could be subject to equitable division in Broward County Family Court divorce proceedings. This means your spouse may be entitled to a share. Key factors in dividing a business during divorce include:
- Ownership and contributions: If you started the business before marriage, it is generally not subject to equitable division. However, if your spouse made financial or other types of contributions to it, they may be entitled to a share.
- Total value of the business: Get a professional valuation to determine the business’s worth, including assets, liabilities, and future earning potential.
- Buyout or co-ownership options: If your spouse is entitled to a share of a family-owned business, you can buy them out or continue as business partners, though this is often tricky post-divorce.
- Impact on business operations: Getting divorced in Fort Lauderdale can disrupt daily operations at your family business, impacting employees, profits, and business relationships.
Protecting Your Business From Fort Lauderdale Divorce
If you have a family-owned business, be proactive and take the steps needed to protect yourself if your marriage is in trouble or you are considering a divorce in Fort Lauderdale:
- Create a prenuptial or postnuptial agreement and specify how the business is handled in a divorce;
- Avoid mixing personal and business funds, which makes it harder to claim the business as marital property;
- Use a buy-sell agreement to outline what happens to a spouse’s share in the business if they leave or if a divorce occurs;
- Keep in mind the role marital misconduct plays in divorce proceedings.
While affairs, addictions, or other types of marital misconduct are not required grounds for a divorce in Florida, they can impact your rights regarding marital property, including ownership interest in your family business.
To Protect Your Family Business, Consult Our Fort Lauderdale Divorce Lawyer Today
Family-owned businesses represent long years of sacrifice and investment. If you are going through a divorce in Fort Lauderdale, Vanessa L. Prieto can guide you in the legal steps needed to protect it. To discuss the options in your case, reach out to our office. Request a consultation today with our experienced Fort Lauderdale divorce lawyer.
Sources:
pewresearch.org/short-reads/2024/04/22/a-look-at-small-businesses-in-the-us/
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
