How the property division process can impact a small business

How the property division process can impact a small business

| Nov 20, 2019 | property division

Divorce will bring significant changes to a person’s life, and his or her finances will change as well. For a Florida business owner, the property division process may also impact the business as well. Because of the complicated way that divorce and business sometimes overlaps, an owner would be wise to work diligently to protect his or her financial interests and the future of the company when going through a divorce.

Many small businesses are also family owned, and a spouse may have a rightful share to ownership or profits. Depending on when the business was started and how the two spouses handled their finances, this may actually be the case. Assets bought or accumulated during the marriage may be considered marital property, which is subject to division during a divorce.

Sometimes, it may make sense for a company to buy out the partner’s share of the business so that the divorce does not impact the future of the business. In a sole proprietorship, an owner may be forced to pay spousal support or agree to share a portion of the profits. There are many factors that can ultimately affect what happens with a company during a divorce.

A Florida business owner will find it beneficial to work with an experienced attorney from the very beginning of the divorce process. The decisions made during property division negotiations will affect a person for years to come, and it is prudent to think of the future when making important choices. Changes are inevitable, but with a fair divorce order, a strong future is possible.