Protecting Your Business Assets Before Filing for Divorce in Fort Lauderdale
For business owners, divorce involves more than dividing bank accounts and personal property. In Florida, business assets acquired or increased in value during the marriage may be considered marital property and subject to equitable distribution. If you are preparing to file, our Fort Lauderdale divorce lawyer explains potential risks and how to protect your business.
Common Divorce Issues That Affect Fort Lauderdale Business Owners
Business interests are among the most complicated and contested assets in a Broward County divorce. Whether you are a sole proprietor, a partner, or a shareholder, the Florida Statutes require a fair division of marital property, which may include business assets or appreciation. Issues that can make this process even more complex:
- Determining marital vs. non-marital value: If your business existed before the marriage, only its growth in value may be divided, but calculating that can be challenging.
- Business valuation disputes: Spouses often disagree about the value of the company, especially if it involves future earning potential.
- Co-mingled finances: Using marital funds for business expenses or involving your spouse in operations may make some or all of the business a marital asset.
- Ownership structures and agreements: If you have business partners, their interests and contracts can affect what is subject to division.
- Cash flow and support obligations: Your reported income from the business may impact decisions about alimony and child support.
How to Protect Business Assets Before Filing for Divorce in Broward County
When getting a divorce through the Broward County Family Court, decisions you make before filing can significantly influence the outcome of your case. If you are a business owner in Fort Lauderdale and are considering divorce, protective steps you can take include:
- Review your business structure: If you are a sole proprietor, consider formalizing the business as an LLC or corporation if appropriate. This can help distinguish business finances from personal ones.
- Update operating and shareholder agreements: Include clauses that limit a spouse’s claim to ownership or require valuation methods in the event of divorce.
- Avoid co-mingling funds: Keep business and personal accounts strictly separate to help prove status as non-marital assets.
- Pay yourself a salary: This can help avoid any claims concerning underreported income.
- Gather the required documentation: Keep clear records of the business’s founding, finances, and daily operations.
- Get a pre-divorce valuation: Hiring a business valuation expert can give you a benchmark before proceedings begin and help counter inflated claims from the opposing side.
Florida business owners can also consider prenuptial or postnuptial agreements as long-term planning tools to protect ownership and control in the event of divorce.
To Safeguard Your Business, Consult Our Experienced Fort Lauderdale Divorce Lawyer
Divorce can threaten everything you have worked hard to build. At Vanessa L. Prieto Law Offices, we represent business owners throughout Broward County, protecting their rights before, during, and after Broward County divorce proceedings. Before you file, speak with our experienced Fort Lauderdale divorce lawyer. Contact our office today to schedule a consultation.
Sources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
browardclerk.org/Divisions/Family
