When A Business Or Professional Practice Is Part Of Marital Assets
If divorce is on the horizon and you or your spouse owns a business or professional practice, that entity will very likely be part of the assets that you must divide. Will you keep the business intact and give one spouse more of some other assets, such as a home or retirement accounts? Or will both of you sell your interests in the business and split the proceeds? These are a couple of ways to approach the matter of business ownership and divorce, but they are not the only ones.
In addition to considering your and your spouse’s rights and desires, you may need to take other partners, investors or employees into account. Did your business formation plan include built-in protections, such as a no-division clause? The business or professional practice may have to stay intact despite the divorce. As you grapple with conundrums such as what to do about the business or professional practice, get an experienced divorce attorney on board as soon as possible. In Brooksville, Hernando County and the greater Tampa Bay area, the easy choice is Jeffrey P. Cario, P.A. With nearly 60 years of combined legal experience, our team offers knowledgeable and skilled representation in complex divorce matters, like what to do with a closely held business.
How Business Structure Could Impact Each Spouse’s Ownership Stake
The type of business ownership structure you have can significantly impact how assets are divided. Here are the main types of business ownership structures and their implications:
Sole proprietorship: This is the simplest form of business ownership, where one person owns and operates the business. In a divorce, the business is considered personal property and may be subject to division. The value of the business will be assessed, and it could be split between you and your spouse.
Partnership: In a partnership, two or more people share ownership of the business. Each partner’s share of the business is considered an asset. During a divorce, your share of the partnership may be evaluated and divided. This can be complex, especially if there are multiple partners.
Corporation: A corporation is a separate legal entity from its owners (shareholders). If you own shares in a corporation, those shares are considered marital property. The court will determine the value of your shares and how they should be divided. This process can be intricate due to corporate regulations and shareholder agreements.
Limited liability company (LLC): An LLC combines elements of partnerships and corporations. Ownership is divided into membership interests. In a divorce, your membership interest in the LLC will be valued and possibly divided. The operating agreement of the LLC may also play a role in how the division is handled.
No matter what type of business you have, our skilled lawyers will do everything they can to ensure that your divorce doesn’t destroy your plans for the business or its long-term prospects.
Completing The Process As Painlessly As Possible
There may be no easy answers as to how to divide the assets associated with your business or professional practice while protecting your rights in a Florida divorce. Our attorneys at Jeffrey P. Cario, P.A., will guide you through these difficult decisions and weigh the options without wasting time or money. Let our ability to cut to the chase work in your favor.
Steps toward resolution of this challenge may include some combination of the following:
- Business valuation, done by professionals
- Divestment of your interest in the business (as one option)
- Reallocation of assets in creative ways
- Negotiations with your business partners
- Negotiations with your spouse
- Mediation
- Trial
You and your attorney may need to consult with business market prognosticators, accountants and other professionals. All these actions can easily overwhelm you if you try to figure it out on your own. Fortunately, our talented team of lawyers has helped other owners of businesses and professional practices find the best resolution to their challenges.
Don’t Think Of It As Failure But As A Path To Renewal
As complex as it may seem to figure out a way to divide your business assets, rest assured that our attorneys at Jeffrey P. Cario, P.A., will always put your best interests as the highest priority to protect. Mr. Cario is board-certified in family and marital law and well-prepared to guide you forward constructively. Kimberly Scarano has over 20 years of experience, including time working as an assistant state attorney with the Sixth Judicial Circuit.
Get the discussion underway very soon, whether you feel ready or not. Understanding what you need to do can save a lot of time and anguish. To schedule a consultation, call 352-448-0546 or send an email inquiry.