Running your own business in Florida is probably a source of pride for you. Not everyone is capable of starting their own business or managing it properly. Whether you built the company from the ground up or inherited it from a loved one, you probably want to do everything in your power to protect your ownership share in the business, especially if you find yourself getting divorced.
The income from your business may be one of your biggest sources of stability, and its value could be something your spouse has an interest in when dividing your property. Many people find themselves wondering whether they can protect their business ownership interest from division in a divorce.
Many factors influence whether the courts will split a business
There is no one answer that applies to every case. The courts generally have to look carefully at the unique family circumstances involved before making a determination. The courts use the equitable division standard to split up marital assets.
The question will quickly become whether your ownership of the business is a marital asset or a separate asset. If you purchased or started the business during your marriage or used income earned during the marriage to create or sustain the business, at least a portion of the business’s value could be marital property. The courts will also probably look at whether or not your spouse contributed to the business.
Additionally, whether or not you have a prenuptial agreement will impact how the courts handle your business. If you signed a prenuptial or postnuptial agreement clearly earmarking the business as your property, the courts likely won’t divide it. Barring that situation, an uncontested divorce, possibly facilitated through mediation, might be a way for you to protect your business by finding other ways to compromise with and compensate your spouse.