Call 239-215-4952 To Talk To A Lawyer Today.

We are open during this time and are taking safety precautions to insure the safety of everyone. Feel free to contact us as you normally would. Stay safe.

Those in a high asset divorce may worry about preserving business

The hard work and effort that one puts into building a business is often hard to measure concretely. However, when a business owner finds him- or herself facing a high asset divorce, having a solid plan in place can preserve the company’s future. Florida residents who are preparing to file a divorce petition have some tools that may help safeguard their business.

One of the first tools is a prenuptial agreement. Though these contracts used to be common only among the wealthiest, or celebrities, they have become more mainstream. In the event that a spouse has worked to build a business before marriage, a prenup can ensure that the other spouse can be compensated with other assets while protecting a company’s future. If a business was started after a marriage, the parties may be able to enter into a postnuptial agreement that spells out how each party can be accommodated without having to dismantle the company.

Along with a prenup between the spouses, it is recommended that larger business plans include a divorce clause. This can stipulate how a former spouse will be compensated without compromising the company’s future. Another suggestion is for a business owner to come to a decision regarding how a business will be valuated. There are three methods of doing so, and each may arrive at a different value, depending on the nature of the business.

Some business owners may be tempted to reduce their company’s value. Doing so may backfire, as a court could rule that the owner provides for the other spouse based on the value of the company before the actions were taken. Lastly, professionals recommend that a business owner seeks to determine the true worth of his or her company before filing for a dissolution. Florida residents preparing for a high asset divorce may be best served by consulting an experienced family law attorney who can help draft a settlement agreement that best meets their needs.