Dealing with a family business in divorce

On Behalf of | Mar 11, 2016 | Property Division |

A Florida couple might find that forming and running a business can be an exciting venture that allows for more time together while providing for the family’s financial needs. However, relationship issues can make a family business difficult. If divorce becomes a consideration, there are major challenges to face in dividing an asset such as a joint business. There are several ways of handling a family business in such an event, and the best option will depend on each spouse’s goals.

One of the least expensive options for a divorcing couple is to keep the business intact with both parties continuing to hold their existing interests and responsibilities. If there is not a lot of interpersonal tension, it might be reasonable to maintain the status of the business to avoid the need for a valuation. If this won’t work, a valuation will be needed. One spouse could buy out the other party’s interests, which would ensure that the business could continue to operate according to the buying party’s goals. It is also possible to sell the business and split the profit.

Financial advice is important for selling a family business or for buying out the interests of one’s spouse. A professional valuation can be expensive, but both parties can split the costs of a single professional to avoid spending more than necessary in the process.

Hillsborough County property division attorneys can be helpful if there are complex assets such as family businesses to consider during the divorce process. Additionally, professionals who are familiar with property division law and issues may be able to investigate concerns about shared debt, possible hidden assets, and retirement accounts that could come into play during divorce. They may provide negotiation insight if certain assets involve costly tax burdens.