Divorce

As a divorce attorney practicing in Gainesville, Florida, The Law Office of Flint Crump, P.A. upholds a strict standard for success and experience in the fields of business litigation and family law. Understanding divorce can be a complex process; Mr. Crump combines comprehensive legal advice and skilled representation to best serve his clients in Alachua, Marion, Levy and Gilchrist counties.

Though divorce can be a trying time for any family, it is especially difficult for clients who own a business. Local Business owners going through a divorce face unique challenges. These include, but are not limited to dealing with, business valuation, proper division of assets, estate planning, spousal support, and alimony. In order to preserve the integrity of your business, The Law Office of Flint Crump, P.A. focuses on maintaining your business as a separate entity from the marital assets during a divorce.

Divorce, Private Business Owners, and prenuptial agreements

Business owners use contracts to ensure successful relationships with clients. In the same way a prenuptial agreement or ‘prenup’ can be beneficial to a marriage and crucial during a divorce. A prenup is a contract drafted prior to marriage that outlines:

Full disclosure of assets, liabilities, incomes and inheritances
How premarital debts will be paid
What will happen to any premarital property
Who will retain the marital and secondary residence(s)
The statuses of inheritances, trust or benefits received by either spouse before or after marriage
What will happen to jointly or individually owned property (real estate, artwork, jewelry)
Alimony, maintenance, or spousal support payments
Death benefits, medical, disability, life or long-term-care insurance coverage

The Law Office of R. Flint Crump believes a prenup is a simple, preventative measure that can dramatically lessen the stress and complexity of a divorce.

Is your or your spouse’s private business a marital asset?

In the event a prenup was not drafted, there are a few preliminary considerations business owners should take into account prior to the divorce proceedings. Florida follows an equitable distribution of property model. In this model the court documents all property accumulated during marriage, known as marital assets, then values and divides it between each spouse. In many cases business owners are surprised to learn that their business may be up for division during a divorce.

To determine if your business could be a marital asset, consider the following questions:

Was the business acquired before or after marriage?
Are one or both parties active in the business?
Has the business value increased during the marriage?
Have you or your spouse actively participated in management or operations of the business?
Is it a family business?
Does the business currently have shareholder, partnership or buy out agreements?

Protecting your business during a divorce

Once you have determined your business is a marital asset, you should take necessary steps to best protect your business. Frequently, owners will try to devalue their company by tampering with business or tax records, taking out unnecessary loans or manipulating salaries. Ultimately, these actions do more harm than good. It is better to maintain best practices and focus on the strengths of your business rather than to create weaknesses. You should:

Appoint an experienced divorce attorney and consult a forensic accountant
A skilled attorney with an extensive knowledge of business divorce cases will guide you through each step of the process. Be sure to exercise full disclosure of all assets, liabilities and debts to your attorney. Additionally, a forensic accountant will be required to properly document and organize the financial aspects of your business.
Stay current on your corporate records
Much of how your business will be valued is based on how well you manage your corporate book-keeping records. With this in mind, it is vital to maintain meticulous records. Proper documentation will aid in the presentation of your business to forensic accountants, appraisers and the courts. Staying up on tax payments and debts is also an excellent way to build strength into the business.
Obtain a fair business valuation
A business valuation is a formal assessment of the economic value of an owner’s interest in the business obtained by a business appraiser. Ultimately, your business valuation will take into account current economic conditions, financial analyses, past and present trends, incomes and assets. As an owner you should be realistic about your company’s current value and open to estimates of its future growth.
Determine if you require additional appraisals
In many cases, owners require more than one type of appraisal. For instance you may need a real estate appraiser for your business property, land holdings and residences. Or if you own a company that maintains a large amount of equipment, for example a construction company, an equipment appraiser may be needed. Take the time to survey your company to determine how to properly value each facet.

Alimony, property division and you or your spouse’s business

Ultimately, your divorce proceedings will entail more than just the business. Therefore, it is important to be aware of the expectations and responsibilities you may have toward your spouse or family. While determining a fair system for the division of assets may be your initial goal, alimony or spousal support or the avoidance of both will most likely be your second. For this reason, many business owners opt for a vocational evaluation for themselves or their spouse. This evaluation serves as a tool to determine vocational ability, to aid in finding employment and to determine the proper amount of alimony needed.

Child Custody and Support

When children are involved decisions pertaining to child custody and child support are frequently the most difficult and emotionally strenuous decisions to make. We understand that the safety and well-being of your child is important to you. But providing for your children does not end at support payments. Business owners are encouraged to re-evaluate their estate plan and update any wills.

Divorce is often an unpleasant and emotionally draining experience. At The Law Office of Flint Crump P.A. we encourage clients to be well informed in all aspects of their divorce. Proper decision making is paramount and the more knowledge you have the better.

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