How the Court Will Divide Your Business During Divorce
Divorce is never easy, and it can become even more complicated if a business is involved. Whether you and your partner built a business together or one of you had an existing business prior to marriage, the courts will typically consider it an asset to be divided during divorce proceedings. If you live in Orlando, FL and need help understanding how the court will divide your business, Ilvento Law has the knowledge and experience to guide you through the process.
Determining the value of the business
Before the court can divide the business, it must first establish the value of the business. This task is typically performed by a professional business appraiser, who will analyze financial records and other relevant data to determine the fair market value of the business. Once this value is determined, it will be used to calculate the percentage of the business that each spouse is entitled to.
Consideration of other assets
In some cases, the court may consider other assets and debts in addition to the business. If one spouse is to receive a greater percentage of the business, the other spouse may be awarded a larger share of other assets, such as real estate or investments, to offset the difference. It is important to have knowledgeable legal representation to ensure that all assets are properly considered and divided.
Factors considered by the court
When determining how the business will be divided, the court will consider a number of factors, including how involved each spouse was in the business and whether the business was started prior to or during the marriage. If one spouse had little involvement in the business, they may be awarded a smaller percentage. Furthermore, if the business was started prior to the marriage, the court may consider that it is separate property, unless the other spouse can prove that they contributed significantly to the growth and success of the business.
Options for dividing the business
The court has several options for dividing a business during divorce proceedings. One option is for one spouse to buy out the other spouse’s share of the business. This typically requires taking out a loan or using other assets to pay the value of the business to the other spouse. Another option is to sell the business and divide the profits between the spouses. This may be the best option if neither spouse is interested in continuing to run the business. Finally, the court may order the business to be split between the spouses, with each one owning a percentage of the business and having a say in how it is run.
Conclusion
Dividing a business during a divorce is a complex task that requires the expertise of a knowledgeable legal representative. If you need help with dividing business assets in Orlando, FL, contact Ilvento Law today for guidance and representation. With their experience and knowledge, they can help you achieve the best outcome for your unique situation.