Not being prepared when starting a Florida business can be detrimental to one’s long-term business goals. In the same way, not making the proper preparations when headed for divorce can be financially destructive to one’s business. As business owners typically rely on their companies to make a living, the impact of a divorce on their ventures can be life-changing in a negative way.
Entrepreneurs usually feel unprepared for how divorce can harm their business, which may be one of the largest assets negotiated during a divorce. In fact, in companies that are closely held, it’s sometimes hard to distinguish between business and personal assets, thus causing further confusion and conflict between two spouses. Hiring an appraiser to figure out the true value of a business may be helpful before beginning the asset distribution process.
In some cases, the owner of the company may take advantage of an option to buy out his or her spouse’s interest in the business. A payout may also be achieved by signing promissory notes. During the divorce proceeding, it is also wise to consider all tax consequences resulting from the couple’s settlement.
Challenging issues, unfortunately, may arise during a divorce when business valuations, finances and taxes are at the center of the proceedings. It may be smart to seek help in understanding applicable laws related to these complicated matters in Florida. This effort may allow business owners to keep their companies financially intact, in addition to securing an appropriate share of the marital assets being negotiated.
Source: New Hampshire Business Review, “The unique impacts of divorce on business owners“, Monica Ann Ness, May 16, 2014