Florida Divorce and Business Assets—Don’t Overlook This Step

One of the biggest mistakes I see in a Florida divorce case is an attorney’s failure to join a marital business into the lawsuit. When I say the word join, this means to add the business as a party to the divorce case. Failure to add a business to the divorce case means that the judge does not have any jurisdiction or power over a non-party business interest, even if that entity was owned by a party or the parties. Therefore, the court does not have the power to transfer any assets to the other spouse. This is critical. 

Your Business May Be Your Biggest Asset—Include It in the Divorce

Typically, businesses are the biggest asset that the parties have. Some attorneys choose not to add them, and they make a huge mistake at the detriment of their clients. This means that if, for example, a husband owns all the shares to a business, the court can enter an order requiring the husband to transfer half of the value of the business to the wife, but if the husband fails to do this, there is no recourse over the business entity itself because it was never joined as a party to the lawsuit.

Sometimes a business interest is owned by two parties. The court will not allow a husband and wife to continue to operate the business post-divorce unless both parties agree to, which is not typical. Also, the value of the business is very difficult to ascertain without both a forensic accountant and a business valuator, who are typically retained as experts to explain to the court how they arrived at a business value and what the other side’s income is. 

Another important thing to note is that a court cannot split the difference between the valuations of competing experts. This means that the court can only choose one value over another value. It means that it could only decide which expert it is going to pick as the most credible. 

As you can see, it is extremely important to get a Florida divorce lawyer who is well-versed in this area. Our firm handles divorce and family law cases throughout Florida. If you have more questions, please call us, and we will be happy to talk to you and provide you with more details.

Speak With a Florida Divorce Lawyer Today

The Florida divorce lawyers at Winthrop Law Offices, P.A., are dedicated to providing every client with the answers they need to make informed decisions. Contact our firm today to schedule a free consultation.