Have a Business? Know the Three Ways to Divide It in Divorce
Dividing a business is one of the most complicated aspects in many divorce cases. Even if you or your spouse owned the business on your own, there is a chance it may still be subject to Florida’s property division rules due to the fact that some of the profits likely contributed to some household expenses. Some income from the household may have also been used to get the business off the ground, and that co-mingling makes it difficult to distinguish one from the other.
As such, most businesses in a divorce case are divided unless the couple can come to an agreement that allows one spouse to keep it. If you are your spouse have to divide a business, continue reading to determine how you want to do it.
Buying Your Spouse Out
If you want to keep the business but do not want to co-own it with your spouse after the divorce, you can buy them out of their share. Buying a spouse out is the most common way to divide a business in divorce. After the business is properly valued, you can pay your spouse a lump sum of their fair share. Alternatively, you and your spouse may also agree to structure the buy-out as a loan with you making regular payments to your spouse until they have received their full fair share. Of course, before buying your spouse out, you must ensure you have the funds to do so.
Selling the Business
Selling a business in divorce and dividing the proceeds fairly is very similar to selling the family home and sharing in the proceeds. However, selling a business is much more complex.
Before selling the business, you must first of course, find a buyer. That is not always easy, particularly if the business was not very profitable. When couples cannot agree on the value of the business, it becomes even more difficult to agree on selling it.
Co-Owning the Business
Co-ownership of a business is not always possible after divorce, but there are cases when it is the best option. In order to co-own the business together, you must be able to work with your spouse amicably, even if the two of you do not love each other any more. Otherwise, the tension will have a negative effect on the business. Couples that choose a collaborative or mediated divorce may find it easier to co-own a business together because these forms of alternative dispute resolution can reduce the amount of bitterness in a divorce.
Our Florida Family Lawyers can Advise You on a Solution
If dividing a business will be part of your divorce case, our Tampa family lawyers at All Family Law Group, P.A. are here to help. After reviewing your case, we will advise on the solutions available so you can make an informed decision you will be happy with for years to come. Call us at (813) 672-1900 or contact us online to schedule a free consultation.