Unfortunately, greater than half of all first marriages end in divorce and those numbers increase for second and third marriage. As a result, it is important to know how a family business may be handled during a divorce.
A business may be the most valuable asset one or both spouses owns. Because of that, it is important for divorcing spouses to understand how business assets may be treated during the divorce process and also how these assets may be divided during divorce. There are generally two categories of property the family court looks at when dividing assets during a divorce. The categories include separate property and marital property. Marital property includes income and assets acquired during the marriage which would likely apply to a business.
Marital property is generally subject to division during divorce and in Florida, marital property is divided equitably, or fairly. On the other hand, separate property is not subject to division and includes property the spouses entered the marriage with, inheritances, gifts and personal injury awards. Comingled property is a third category or property that can come into play and should also be understood. All of the couple’s property will need to be categorized before it is divided.
There are a variety of different ways to protect business assets from divorce the couples should understand and also how to negotiate a divorce settlement when business assets are involved. Trained guidance can help both couples entering a marriage and those divorcing protect their interests, including business assets.