In many cases, a couple going through a divorce will have to divide all assets between each other. This is called equitable distribution, and it’s practiced in Florida and many other states. Basically, the courts will look at all your assets and determine if they are marital property, which includes anything obtained during the duration of the marriage. Assets that fall into that category are cars, homes and retirement accounts. One of the most contested assets is the division of a business.
The buyout route
After a divorce, it’s likely that both people do not want to see each other on a daily basis. The person who has been running the business may simply buy out their former spouse’s half of the company. If you are buying out your ex’s share, it is important to note that you will want to request a valuation of the entire business to ensure that you are not overpaying.
Co-ownership
A business can be difficult to run together. However, if you are on good terms with your spouse, you may be able to have co-ownership of the company without disrupting your business’s current flow. This can be done if you speak to your spouse about having you run the business and them accepting payments on profits made.
Selling the business
In many cases, an agreement for a buyout or co-ownership may not be possible. In this case, both parties would ultimately decide that the best course of action is to sell the business. Although one spouse may not like it, it could be the best way to avoid constant interaction and divide the profits evenly. This is also seen when couples cannot come to an agreement about their home.
Property division during divorce, especially one involving a business, can be a difficult thing to go through. It is highly recommended to obtain an attorney’s services to ensure that you and your business are protected throughout the process.