Divorce And Florida Small Business Owners
Florida small business owners work hard to be sure their businesses are healthy year after year, so they can earn their own income and provide for their employees. Because running a small business can consume an individual’s time and energy, it is natural for people to feel a strong sense of ownership when it comes to a business they’ve built from the ground up. But if you grew that business over the course of your marriage, and that marriage is coming to an end, the financials of the business will have to be disclosed during the divorce process.
Valuing your business will be part of assessing marital assets, but talk to a West Palm Beach family attorney before moving forward with a business evaluation assessment. You want to be sure it is done at the right time as valuations come at a cost, and if divorce is far in the future, you don’t want to put yourself in the situation of having to pay for two assessments.
Prenups, Partner Agreements, and Other Contracts
There are other factors your lawyer will review for you as well, including any contractual agreements that are in place. For instance, if you and your spouse drafted a prenuptial agreement prior to taking your vows, there could be a clear outline of how business assets are to be distributed, often in a way that allows one spouse to exit the marriage with assets while the other is able to keep the business.
Partnership agreements also need to be reviewed. Some of these agreements have ways to buy out a particular number of shares. If your spouse is one of the partners, purchasing their shares could be a path to settling asset division concerns and will not upset the organizational flow of the profitable endeavor.
Confidentiality Agreements and Intangible Assets
Some of the best agreements are reached when there is a commitment to negotiating toward an optimal outcome. In these situations, the lawyers and evaluation experts may sign agreements connected to confidentiality, which will give the spouses involved the confidence to fully disclose the current financial health of the business along with future earnings projections.
Additionally, when experts are reviewing the value of a business, they will be looking into information beyond the balance sheets, including if the business owns property, inventory, equipment, or investments. Intangible assets can significantly boost the evaluation. Share the details of your case with a West Palm Beach family attorney.
Many do not want to have to sell their business during a Florida divorce, and there are other options, from buying out a spouse to structuring asset distribution payments rather than having to pay a large sum all at once.
Are you worried about the impact your divorce will have on your business? To create a well-crafted divorce agreement, all assets and debts need to be disclosed, including financial figures related to your business. To talk through what resolutions are possible given your particular situation, connect with the legal team at Bruce S. Rosenwater & Associates. Florida family lawyers are available to help. Book your free initial consultation today.