For a Florida business owner, the end of a marriage can be a frightening prospect. There is a lot of uncertainty regarding what will happen to a small business. It can help to understand how equitable distribution of assets works, as well as options for negotiating a property division settlement and the various possibilities regarding business assets.
Addressing business assets in a divorce is complex. One of the first steps is to seek an appraisal of the Florida business in order to have an accurate current value. After this, there are three main scenarios for what could happen, starting with the possibility that one spouse could retain ownership of the business in exchange for buying out the other spouse’s interest or an appropriate financial settlement.
In some cases, both spouses may retain their share of ownership of the business, even after divorce. It may be beneficial for parties to work through a plan that will allow them to work together amicably for the sake of the business. The third possibility of what could happen to a small business in a divorce is that the spouses may sell the business and split the profits of the sale.
When married business owners decide to negotiate a divorce agreement out of court, it is likely they will decide on one of the above three scenarios. The property division process is complicated, especially when a business is involved, and it is prudent to carefully consider how decisions will impact future well-being. It may help for a business owner to discuss his or her property concerns with an experienced attorney before making any decisions.