Can I Sell My Business During A Divorce?
Once a divorce case has been filed, the judge assigned to the case will enter a standing order. The standing order prohibits the parties from selling any assets, including businesses. That is why it is important to file as soon as possible in the state of Florida so that assets are not liquidated and further debts are not incurred.
If My Spouse And I Want To Continue Operating Our Business Together After The Divorce, Can We Add Stipulations To Our Decree Regarding Future Co-Ownership Of The Business, Or Do We Need A Business Attorney To Do This For Us?
If you and your spouse want to continue operating a business together after divorce, we will work with a business attorney to ensure that the Marital Settlement Agreement and the Business Agreement are congruent and do not have any contradictions. With that said, it is not recommended for spouses to continue co-owning a business after divorce, even if they are the best of friends; all too often, circumstances change, ex-spouses develop different goals for the business, they start dating and jealousy can still exist and the business may suffer as a result. There are a number of ways to work through this issue so that neither party loses their livelihood or future income.
How Will A Business’s Stock Options Be Divided In Divorce?
If acquired during the course of the marriage, stock options will be subject to equitable distribution in a divorce. However, valuing the shares of stocks can be problematic. In a business, the value can be considered goodwill and/or enterprise goodwill; the former maintains or contributes to the shares of the business and is not part of the marital estate, while the latter is part of the marital estate. It will be necessary to separate the shares in accordance with the type of goodwill each is associated with, as well as determine whether or not the shares are marketable. Any value attributed to stocks may be significantly discounted. A business valuation or forensic accounting may need to be performed in order to determine the value of the shares at the time of the divorce and the equitable distribution.
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