At The McKinney Law Group, we assist clients through all stages of divorce, including cases that involve family businesses and professional practices. Our team works closely with financial professionals to evaluate the value of business assets, review ownership records, and determine how those assets should be addressed in divorce proceedings. We also assist with negotiating settlements, preparing agreements, and representing clients in court when needed. By addressing both the financial and legal aspects of divorce, we help protect our clients’ long-term interests while guiding them through each decision. For those seeking a St. Petersburg, FL divorce lawyer, our office provides legal support tailored to the needs of business owners and families.
How Is A Business Valued During Divorce Proceedings?
Business valuation in divorce is based on several methods, often including the market approach, income approach, or asset-based approach. Financial professionals review records such as tax returns, balance sheets, and revenue reports. Courts rely on these evaluations to determine how much of the business is considered marital property. The process helps establish a fair figure that can be used in settlement discussions or trial.
Can A Business Started Before Marriage Be Considered Marital Property?
A business owned before marriage is generally considered separate property, but it can become partly marital if it grows or increases in value during the marriage. For example, if marital funds or a spouse’s efforts contributed to the growth of the business, that portion may be subject to division. Courts often look closely at how much the other spouse’s involvement influenced the business.
What Role Does A Prenuptial Or Postnuptial Agreement Play In Protecting A Business During Divorce?
A prenuptial or postnuptial agreement can outline exactly how a business will be treated if divorce occurs. These agreements may state that the business remains the separate property of one spouse, regardless of what happens during the marriage. When properly drafted and enforceable, they provide clear guidance to the court and can prevent disputes. Without such an agreement, courts have more discretion in deciding how the business should be handled.
How Do Courts Determine Whether A Spouse Is Entitled To A Share Of The Business?
Courts consider factors such as the duration of the marriage, each spouse’s contributions, and whether marital funds were used to support the business. Contributions can be financial or through time and labor, even if one spouse did not hold ownership on paper. If the court finds that the non-owning spouse significantly contributed to the business’s growth, they may be entitled to a portion of its value.
What Options Exist If Both Spouses Are Co-owners Of The Business?
When both spouses are co-owners, the court or the parties themselves must decide how to divide ownership moving forward. Options may include one spouse buying out the other’s interest, selling the business and dividing the proceeds, or continuing to operate the business together. In many cases, buyouts or sales are preferred to reduce ongoing disputes, but the decision depends on the circumstances and the willingness of both spouses to cooperate.
Protecting Business Interests During Divorce
Divorce that involves a business calls for thoughtful preparation and a well-defined legal approach. From valuation to ownership decisions, each step carries financial and personal consequences. Having experienced representation allows us to focus on protecting our rights while keeping the business secure. To discuss your situation and explore your options, contact The McKinney Law Group today for guidance from a trusted divorce attorney.