How Are Business Assets Divided in a Divorce?
Dividing assets during a divorce can be complicated to begin with, but if either spouse owns a business, it can be even more troublesome. The first question to ask is whether the business is a marital asset. Only marital assets can be divided during a divorce, so if the business doesn’t constitute one, there’s no need to go any further. If a spouse owned a business before getting married, for instance, it could be considered a non-marital asset and likely would not be subject to division during a divorce. In addition to being acquired prior to marriage, there are various other ways in which a business could be considered a non-marital asset, which a qualified attorney can explain to you.
Assuming that the business in question is a marital asset, the divorcing spouses will need to determine the fair market value of the business as of the date of separation. Because there are so many different components of a business, it can be difficult to make this determination, and the spouses will likely need to call in the help of a valuation expert, such as a forensic CPA. The expert might consider factors such as income, assets, or market value.
Once the business has been valued, it will need to be divided between the spouses. The circumstances of each case will vary, but in many instances, the spouse who operated the business will remain the owner and will have to buy out the other spouse’s interest.
Skilled Divorce Attorneys Representing Clients Across Tampa Bay
If you’re in the midst of a divorce, or if you’re contemplating a divorce and want to know more about how your assets will be divided, you can turn to the Law Offices of Audrey A. Jefferis, P.A. We have extensive experience handling divorce cases, and we’re pleased to serve clients throughout Pasco, Pinellas, Hillsborough, and Hernando Counties. Contact us to schedule a consultation—we’re available from 8:30 a.m. to 5 p.m. on weekdays, and we have offices in New Port Richey and Palm Harbor.