Tampa Business Owner Divorce Attorney

Any divorce has the potential to become complicated, but when one or both parties is a business owner, a case will likely become highly complex. Many people do not consider the fact that their business may be at risk during a divorce, but it is a very real possibility. When getting a divorce as a business owner, it is important to know how to protect your company from any damage the divorce may cause and to understand what the law says about property division. Below, our Tampa business owner divorce attorney explains further.

Are Businesses Marital or Separate Property in Divorce?

Under Florida law, all marital property is subject to property division during divorce. Marital property is divided fairly, which does not necessarily mean equally, during the divorce process. Marital property is defined as any assets or liabilities that were acquired by the couple during the marriage. Separate property, on the other hand, is defined as any property brought into the marriage by one spouse.

Many people think that if they owned the business prior to getting married, it is automatically considered separate property. However, this is not necessarily true. Any part of the business that appreciated during the marriage is considered a marital asset and so, it may be subject to division during divorce. Additionally, if the profits from the business were used to contribute to the household, this could also deem the business as marital property.

Although the above laws seem straightforward, they are not. For example, if the business was registered as a Limited Liability Company (LLC), it is a separate legal entity from the owner. This type of business structure is meant to protect business partners and shareholders from financial liabilities. Due to the fact that dividing a business is so complicated, it is always best to work with a Tampa business owner divorce attorney who can protect your interests.

Valuing a Business During Divorce

If all, or a portion, of your business is subject to division during divorce, it must first be valued. There are different ways to do this including:

Cost method: This method of valuation focuses on the assets within the company. An appraiser will assess the financial value of the assets and establish how much it would cost to obtain these again in the current financial climate. Liabilities are then reduced from this amount to determine the company’s value.
Income method: Businesses are commonly valued using the income method, but it can be complicated. Appraisers will usually strictly use the company’s current rate of income, but they may also take into account any future potential for income, as well.
The market method: This method is a controversial method of valuing a business because it largely relies on the appraiser’s own discretion and opinion. The appraiser will compare the business with similar companies to determine its value.

Our Business Owner Divorce Attorney in Tampa Can Protect Your Company

While your business may be at risk during divorce, there are ways to protect it. At Florida Law Advisers, P.A., our Tampa business owner divorce attorney can advise on what these are to ensure neither you nor your company suffers unnecessary harm. Call us today at 1 (800) 990-7763 or contact us online to schedule a consultation and to learn more about how we can help.