When you co-own a successful business, it is an asset to you and your business partner.
Unfortunately, that means a court will consider it marital property when deciding how to divide assets in a Florida divorce case and award your partner’s former spouse a portion of your company.
Talk about the tough stuff
While it is not comfortable or customary to discuss difficult personal matters at work, forming a business partnership is a big deal, and the fallout from a divorce can impact the future of the entire venture. You need to know if your partner’s spouse stands to gain company shares in the event of a split so you can form a partnership agreement that protects your interests.
Get a business valuation
When you learn about your business partner’s personal marriage woes, you should entertain the possibility that you may need to dissolve your company. Under this assumption, you should assess all your assets and liabilities so you have a clear understanding of what your business is worth.
Prepare to testify in court
During divorce proceedings, the judge may expect you to give testimony about the facts of your business. It is important to present accurate records and partnership agreements so the court can make a fair decision regarding your company’s shares in the property division phase.
When you have a great idea and a dream of success, you do not always consider the circumstances that could bring down your business. If you or your business partner get married, it is important to understand the Florida laws pertaining to divorce and property division and how it affects your partnership.