Tag Archive for: division of assets

Is My Spouse Entitled to Half My Business During a Florida Divorce?

When going through a divorce in Florida, the division of assets can be a complex and emotionally charged process. If you own a business, you may be particularly concerned about how it will be treated during the divorce and the division of assets. One of the most common questions is whether your spouse is entitled to half of your business.

Concerned about protecting your business during a Florida divorce? Let’s talk. Call Crystal Collins Spencer, Attorney at Law at 850-912-8080 to set up a consultation now. 

Understanding Marital vs. Non-Marital Assets

In any Florida divorce, a key step is figuring out which assets are marital and which are non-marital. Marital assets include anything you and your spouse acquired or earned together during the marriage. These are typically subject to division. Non-marital assets, however, are those that belong to just one spouse, usually because they were owned before the marriage or were received as a gift or inheritance. These generally stay with the original owner.

For business owners, understanding this distinction is essential. If your business was started during the marriage, it’s likely a marital asset. But even if it was established before you got married, any increase in its value during the marriage could be considered a marital asset. The courts will look at how closely your business is tied to marital finances and efforts. For example, if your spouse helped with the business, either financially or by working there, this involvement could affect its classification. 

How Business Ownership Affects Division of Assets

When it comes to dividing a business in a Florida divorce, the timing and nature of its ownership play a significant role. If you started or acquired your business during your marriage, it is likely viewed as a marital asset and thus subject to division. But even if you founded the business before tying the knot, any increase in its value while you were married could also be split. The court will dig into the details of how your business intertwines with your marital finances and efforts.

For example, if your spouse contributed financially, offered labor, or supported you in growing the business, this involvement can impact its classification. This means the court will consider not just the business itself, but also any marital funds or efforts that helped it thrive. 

Factors Courts Consider in the Division of Assets

When dividing assets during a Florida divorce, the court looks at various factors to ensure fairness. They consider each spouse’s contributions to the business, which could include financial support, labor, or even indirect support like managing the household. The economic situation of each spouse is also important; the court will look at both your financial standing and future earning potential. The length of your marriage can also play a role.

For example, in longer marriages, there’s a greater likelihood that both spouses significantly contributed to the business’s success. Additionally, the court examines whether one spouse’s career or education was put on hold to benefit the business. This is particularly relevant if one spouse sacrifices personal opportunities for the business or the family. 

Valuation of the Business During Divorce

Determining the value of your business is a crucial part the division of assets in a Florida divorce. This process establishes the business’s worth, which influences how its value will be split between you and your spouse. To achieve this, the court often calls on financial experts who analyze various factors such as the business’s assets, income, liabilities, and market conditions. These experts use different methods to assess the value, and the chosen method can significantly impact the final outcome.

For instance, one common method is the income approach, which looks at the business’s earning potential. Another method is the market approach, which compares your business to similar ones that have recently sold. The asset-based approach evaluates the company’s assets and subtracts its liabilities. Each method has its pros and cons, and the court will decide which is most appropriate based on the specifics of your business. It’s important to understand that the valuation process can be complicated and may require professional assistance.

Protect What Matters to You with Crystal Collins Spencer, Attorney at Law

Wherever you are in the divorce process, we can help you protect your business and other assets. Call us at 850-912-8080 or get in touch online.

How Are Digital Assets Divided During a Florida Divorce?

A divorce means dividing homes, dividing lives, and dividing assets. We all understand things of value, including real estate, bank accounts, property, cars, art, pensions, and investment funds.

But as the world has gone online, there is a full array of valuables you may not have considered. They are digital assets, but they may have a substantial tangible or sentimental value to you.

It is important not to leave digital assets out of your divorce plan.

Digital Assets

Over the years, you have you collected pictures of your family vacations online? Do you store them on a cloud or a computer? Does the camera in your smartphone automatically upload to a cloud?

These memories are not replaceable and may hold great value to you.

Besides digital assets with sentimental value, many of your most important financial assets may be online.

For example:

  • A website – Do you have a business attached to a website that generates traffic and income? A website is the digital equivalent of a business calling card and may represent a substantial online income.
  • An Etsy storefront or eBay presence – Some people turn to the web to sell their products. It may be one supported by the platform, but the visitors you have generated over the years represent an asset. You have created a presence and brand that brings value to your bank account.
  • Social media accounts – Not just for selfies, your online presence may represent a form of income through your efforts as a social media promoter or influencer.
  • Email Accounts – You may have amassed a listing of people interested in you, your work, or your products. You need to stay in touch with them to keep your business healthy. If you use AWeber or Mail Chimp to grow and market your business, that list has value both now and in the future.
  • Cryptocurrency – Currency has gone online as well. Bitcoin, Ethereum, and Binance Coins are volatile digital assets that may hold a significant monetary value.
  • Investments – Your investments, stocks, bonds, mutual funds, and retirement funds may live online and create an extensive digital asset portfolio that represents value. 
  • Streaming media – You have paid for a subscription to streaming movie services and paid memberships for some sites such as online gaming. You may have amassed a digital music library, books, and even frequent flyer miles.

It’s easy to overlook the value of these assets to you, but they may represent thousands of dollars of value and are not to be forgotten in your Florida divorce.

A Negotiated Divorce Settlement

To divide property in a Florida divorce, both parties must disclose their assets, and their value needs to be determined. Each individual must create an inventory of the assets accumulated during the marriage.

Digital assets in cryptocurrency are a relatively new topic in the law. Cryptocurrency should be considered a financial asset similar to a stock or mutual fund, especially if they were purchased with joint funds. Since the value of cryptocurrency is subject to wild fluctuations, it may need to be liquidated to determine a fair market value that can be divided.  

You will need to determine how much you value each digital asset, now and in the future. The assets will be divided equitably through negotiations between the partners and their legal representatives. In some cases, it may be challenging to split online assets. In other cases, things may be able to be worked out more smoothly. Your experienced family law attorney can help you negotiate the items to be divided after their value is assessed.