Own a Florida Family Business? How to Protect It in a Fort Lauderdale Divorce
Building a family business takes decades of hard work and sacrifice. When a marriage ends, that business can suddenly become one of the most contested assets in a Fort Lauderdale divorce. Without a clear legal strategy, you could face a court-ordered buyout, forced sale, or ongoing financial entanglement with your former spouse.
Protecting what you and your family have built requires immediate, careful attention. Our experienced Fort Lauderdale divorce lawyer explains how Florida law applies in these cases and strategies for protecting what your family worked so hard to build.
How Florida Divorce Laws Apply to a Family Business
When a couple gets a divorce in Fort Lauderdale, all assets accumulated during the marriage are divided equitably between them under Section 61.075 of the Florida Statutes. A business or professional practice that was started or grew significantly during the marriage is generally subject to equitable division, regardless of which spouse ran the day-to-day operations.
Key questions Florida courts examine when dividing a business interest include:
- When the business was founded, and whether it predates the marriage.
- How much of the business’s current value developed during the marriage, rather than before it.
- Whether marital funds or either spouse’s labor contributed to the business’s growth.
- Whether a valid prenuptial or postnuptial agreement protects the business.
- How non-compete agreements and restrictive covenants factor into the overall business valuation.
Getting an accurate business valuation is vitally important. Without this, you risk either significantly overpaying your spouse or leaving yourself vulnerable to a court-imposed valuation that does not reflect reality.
Considering a Fort Lauderdale Divorce? Strategies to Protect Your Family Business
A family business often represents decades of hard work and determination. If you are considering a divorce in Fort Lauderdale, the following strategies can help protect it:
- Keep business accounts separate from personal or marital finances and avoid commingling funds.
- Get a professional valuation from a certified professional to strengthen your negotiating position.
- Offset any interest your spouse has in the business with other marital assets, such as real estate or retirement accounts.
- Consider a buyout that pays your spouse their equitable share over time without disrupting business operations.
- Keep an open mind when it comes to mediation, which gives both parties more control over the outcome and often produces more business-friendly resolutions.
- Review your pre- or postnuptial agreement to determine how it applies to the business.
Under Florida Statute § 61.075(1), courts must specifically consider the desirability of retaining any asset, including a business interest, intact and free from interference by the other party. That provision exists precisely to protect operating businesses from being dismantled by a divorce.
Contact an Experienced Fort Lauderdale Divorce Lawyer Today
A family business represents decades of hard work and sacrifice. At Vanessa L. Prieto Law Offices, we provide the experienced representation you need to protect it in a Broward County divorce. To build the best possible legal strategy, contact our office and request a consultation with our Fort Lauderdale divorce lawyer today.
Source:
flsenate.gov/Laws/Statutes/2024/61.075
