Don't want your ex-spouse to end up as your business partner? Here's how to guard what's likely your most valuable financial asset.
Our home and business are probably the most valuable financial assets you own. You've spent countless hours and resources nurturing and growing your business. Your business can feel that it is as much a part of you, as your family. But did you know that you might be unwittingly doing things that could put your business at risk in the event of a future divorce?
I am a business owner just like you, so as a fellow business owner and attorney focused on divorce and family law in Orlando and Central Florida, I understand the connection you have to something you have sacrificed and built over time. Sometimes, depending on your unique circumstances part of the divorce will include giving a portion of the company to your spouse. This can be heartbreaking!
In Florida, depending on your individual circumstances, your spouse may be entitled to as much as (50%) fifty percent of your business in a divorce. What can you do to protect your business; If you do not want your ex-spouse to remain in your life as a business partner?
How to Protect Your Business in a Divorce: A well-drafted Prenuptial or Postnuptial Agreement can protect your Orlando located business, income, and assets, so that it is not subject to Florida equitable distribution laws. A Prenuptial or Postnuptial agreement can be a very powerful tool in protecting your business and less expensive and litigating the division of a business.
What if you did not get a prenuptial agreement. A postnuptial is very similar to a prenuptial agreement. The only difference is that it is an agreement you and your spouse enter into after you have been married. It does not matter how much time has passed since you were married.
In order to be valid, prenuptial and postnuptial agreements in Florida must contain vital elements as a prenuptial agreement.
Another option is to “Pay-off” Your Spouse. This is an optimal option if you do not want to be partners with your ex-spouse.
(1) You can utilize your share of other marital assets including cash, stocks, real estate, retirement funds, to buy out your spouse.
(2) Property Settlement Note where you pay your spouse over time the numerical value of their share of the business.
(3) Sell the business and divide the sales price. This is obviously the least preferred method, but all too common. When the business represents the vast majority of all assets, there just may be no other way to pay off the other spouse.
If you are facing issues with protecting your assets, contact the Marin Law Firm for more information. Contact us at 407-449-7804 to schedule a consultation and evaluation today!