Determinations About Marital Assets
Under Florida family laws marital assets are to be divided in an equitable fashion during a divorce. While “equitable” often means “equal,” a judge making determinations about property division during divorce proceedings may consider a wide range of factors. These factors can be especially complicated when it comes to determining what happens to a business in a divorce.
An attorney can be an important resource in any divorce, but securing the services of a legal professional can be especially important when complex financial assets are involved, such as a family business. It can be difficult to understand the full value of the enterprise, and establishing what business interests should be awarded to can prove very contentious.
When you have a lawyer on your side, you can rest assured in the knowledge that someone is watching out for your best interests.
Establishing What Happens To A Business In A Divorce
Dividing business assets during divorce can be particularly difficult for many possible reasons. For example, one spouse may have owned a business before the marriage occurred and determining what amount of the businesses’ worth may be considered marital assets may be challenging. One spouse may also have made more substantive contributions to a business and may continue to fulfill important operational functions.
Following are some approaches that may be applied to business holdings during a divorce:
- A business that is started during the course of a marriage, even if the enterprise is undertaken solely by one spouse, is likely to be considered marital property. Rather than divide the business in half, however, a judge is likely to award it to one partner and give another partner financial or property compensation to make things fair.
- If one spouse forms a business prior to a marriage, it may be regarded as separate property. Any gains in value over the course of the marriage, however, are typically considered marital property that is to be distributed to both spouses.
- A business owned by one spouse may be wholly converted from separate property to martial property if legally binding paperwork establishing joint ownership with another spouse is filed before the dissolution of a marriage. In such cases, the full value of a business would likely be shared between spouses.
These are only some approaches a court may use to determine what happens to a business in a divorce.
Getting Legal Assistance In A Divorce
In considering how you will go about dividing property with a spouse, it is important to be fully aware of the possible outcomes. An attorney will understand the full range of actions that may be ordered by a judge in a court decree, including what might happen to retirement plans and savings after divorce.
Your lawyer will also understand processes for determining the value of marital assets that can allow you to make sound legal decisions throughout the divorce process.