What Happens To A Family Business In A Tampa Divorce?
You and your spouse built something together, or maybe you brought a business into the marriage and watched it grow over the years. Now that you are facing a divorce in Tampa, one of the biggest questions on your mind is likely what happens to that business.
The answer depends on several factors, and the stakes are high. Our experienced Tampa divorce lawyer can help you understand your rights and protect what you have worked so hard to build.
Is A Family Business Considered a Marital Asset When Getting Divorced in Tampa?
Before a court can decide what to do with a business, it has to determine whether the business qualifies as a marital asset. Under Florida Statute 61.075, assets acquired during the marriage are generally treated as marital property subject to equitable distribution. That means if you started or acquired your business after your wedding date, it likely falls into the marital estate.
However, the picture gets more complicated in several common situations:
- A business started before the marriage is usually a nonmarital asset. However, any increase in its value may be divisible.
- If either spouse used marital income to pay business expenses or invested joint savings into the company, those contributions can create a marital interest.
- A valid prenuptial or postnuptial agreement can exclude a business from equitable distribution, even if it grew during the marriage.
- When business and personal finances become commingled, courts may treat what started as a separate asset as partly or fully marital property.
The Hillsborough County Family Court starts with a presumption of equal division, but may deviate from that based on the specific facts of your case.
How Hillsborough Family Courts Value and Divide a Tampa Family Business
Once a court determines that a business is a marital asset, it must assign the business a value before dividing it. Experts generally apply either the income approach, the market approach, or the asset-based approach.
After the court establishes a value, it typically resolves the business interest in one of several ways:
- One spouse buys out the other’s share, often by trading other marital assets of equal value, such as a home or retirement account.
- Both spouses co-own and operate the business after the divorce, though this arrangement works best when both parties can cooperate.
- The couple sells the business and splits the proceeds in accordance with the court’s equitable distribution order.
Hidden income, understated revenues, and inflated expenses are common tactics courts watch for. Get professional legal help to protect your rights throughout the property division process.
Consult Our Experienced Tampa Divorce Lawyers Today
Dividing a business in a Tampa divorce is one of the most complex financial challenges you can face. At Bubley & Bubley, P.A., we can review your case, determine whether a family business is a marital asset, ensure it’s valued accurately, and protect your interests in terms of a settlement.
To request a consultation, call or contact our experienced Tampa divorce lawyers online today.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html
