Will My Spouse Get Half of My Business in a Florida Divorce?

When facing a divorce in Florida, one of the most critical concerns for business owners is whether their spouse is entitled to a portion of their business. Understanding how Florida’s equitable distribution laws apply to marital assets and liabilities is essential for protecting your financial interests during the dissolution of a marriage. Below, we explore the laws governing business interests in Florida divorces and provide guidance on what you can expect.

Equitable Distribution in Florida Divorces

Under Florida Statutes Section 61.075, Florida follows the principle of equitable distribution when dividing marital assets and liabilities. This does not necessarily mean a 50/50 split; rather, the court aims to achieve a fair distribution based on specific factors. The statute outlines that marital property—including assets and liabilities—will generally be divided equitably, while nonmarital assets remain with the individual owner.

Marital vs. Nonmarital Assets

A key consideration in determining whether your business is subject to division is whether it is classified as a marital or nonmarital asset. Nonmarital assets include those acquired before the marriage or obtained through inheritance or gift during the marriage, provided they were not commingled with marital assets. Conversely, marital assets include property acquired or improved during the marriage, even if initially classified as nonmarital.

If your business was started before your marriage, it may be considered nonmarital property. However, any increase in the value of the business during the marriage attributable to the efforts of either spouse or the use of marital funds could be considered marital property and subject to division.

Contributions to the Business

Florida law, under Section 61.075(1)(g), considers the contribution of each spouse to the acquisition, enhancement, or production of income related to marital and nonmarital assets. If your spouse contributed directly to the success of your business, whether through labor, advice, or managing other household responsibilities that allowed you to focus on the business, the court might classify part of the business’s value as a marital asset.

This can lead to situations where your spouse has a claim to a share of the business, even if they were not formally involved in its operations. The court examines the economic contributions and the overall context of the marriage.

Valuation of the Business

Before determining the division of a business, it must be accurately valued. The fair market value of a closely held business is used to determine its worth, as required by Section 61.075(6)(a)(f). Valuation often involves financial experts who assess assets, liabilities, income, and goodwill. Enterprise goodwill—value attributable to the business itself, separate from the owner’s personal reputation—is typically considered a marital asset.

The valuation process can be complex, particularly if the business involves significant intangible assets or partnerships. Any disputes about the valuation could significantly impact the outcome of the division process.

Retaining the Business After Divorce

If your business is classified as a marital asset, retaining full ownership after the divorce is possible but may require offsetting your spouse’s share. The court may allow you to “buy out” your spouse’s interest by awarding them other marital assets of equal value or arranging for a monetary payment. Florida Statutes Section 61.075(10) permits the court to order lump-sum or installment payments to facilitate equitable distribution.

Another approach is to negotiate a settlement agreement with your spouse, which could include provisions to keep the business intact. Mediation or collaborative divorce methods can be effective in reaching such agreements while minimizing court involvement.

Protection for Nonmarital Businesses

If you believe your business is a nonmarital asset, providing evidence is crucial. Documentation, such as records of when the business was started, how it was funded, and whether marital funds or efforts contributed to its growth, can help establish its classification. Florida Statutes Section 61.075(6)(b) outlines the presumption of marital assets but allows for clear and convincing evidence to rebut this presumption.

A premarital or postmarital agreement can also protect a business from becoming a marital asset. Under Section 61.079, the Uniform Premarital Agreement Act in Florida permits couples to define property rights and responsibilities in the event of a divorce. If you have a valid agreement in place, it could prevent your business from being subject to equitable distribution.

Interim Distribution During Divorce Proceedings

During the divorce process, financial needs or emergencies might arise that necessitate interim distributions. Section 61.075(5) allows courts to make partial distributions of marital assets, including businesses, if extraordinary circumstances exist. Such distributions require careful consideration to ensure they do not cause inequity or prejudice to either party’s claims.

For example, if retaining the business is essential to avoid financial harm or to maintain operations, the court may approve an interim order while ensuring that both parties receive fair consideration in the final distribution.

Sarasota, Bradenton, and Venice, Florida Business Owner Divorce Lawyer

Navigating a divorce involving business interests requires expertise in Florida’s family law statutes and equitable distribution rules. Each case is unique, and outcomes depend on a wide range of factors, including the classification of assets, contributions by both spouses, and the terms of any existing agreements.

If you are concerned about how your business might be affected in a Florida divorce in Sarasota, Bradenton, Lakewood Ranch, or Venice, Florida, it is essential to consult with an experienced divorce and family law attorney. The Law Offices of Matthew Z. Martell, P.A. can provide you with personalized advice and representation tailored to your specific circumstances. Protecting your business and financial future requires a strategic approach, and we are here to help.

Contact the Law Offices of Matthew Z. Martell, P.A. by calling (941) 556-7020 or contacting us online for a consultation.

award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award award

The Law Office of Matthew Z. Martell located in Lakewood Ranch provides legal services to the following areas: Sarasota, Osprey, Siesta Key, Bird Key, Lido Key, Longboat Key, Bradenton, Lakewood Ranch, Anna Maria Island, Holmes Beach, Palmetto, Ellenton, Parrish, Venice, South Venice, Manasota Key, Englewood, Casey Key, Nokomis and all areas of Sarasota County and Manatee County. Let us help you today.

Schedule a consultation today.