How to Navigate Divorce if a Business is Involved

By: Jarbath Pena Law Group

Divorce is never easy—but when you and your spouse own a business together, the emotional and financial stakes are even higher. Your company may represent years of hard work, shared dreams, and major financial investment. Now that you’re going separate ways, the question becomes: what happens to the business?

Navigating divorce while jointly owning a business adds layers of complexity, but with the right legal strategy and guidance, it’s possible to protect your financial future and find a workable solution. Here’s what Florida business owners need to know when divorce and entrepreneurship intersect.

---

Step One: Determine If the Business Is Marital or Non-Marital

In Florida, property is divided through a process called equitable distribution, which means assets are divided fairly—but not always equally.

The first question your attorney will ask is whether the business is considered marital or non-marital property:

• Marital Property: If the business was started during the marriage, or if both spouses contributed to its growth, it is generally considered marital property and subject to division.

• Non-Marital Property: If one spouse started the business before the marriage and kept it entirely separate, it may be considered non-marital—however, the business or a portion of the business may be considered marital if  the other spouse contributed time, money, or resources to its operation or growth.

Even if a business started as non-marital, it can become marital or partially marital through commingling or active participation by both spouses. For example, if your spouse helped manage the business, paid for business expenses, or was involved in decision-making, the court may classify it as a shared asset.

---

Step Two: Obtain a Business Valuation

Before you can divide a business, you need to know what it’s worth. A professional business valuation provides an objective assessment of the company’s value, based on factors such as:

• Revenue and profit margins

• Assets and liabilities

• Market competition and industry outlook

• Goodwill and brand recognition

• Future earning potential

This valuation is typically conducted by a forensic accountant or a certified valuation expert. It’s essential that both spouses agree to the methodology and the final valuation—or be prepared to present competing valuations in court.

---

Step Three: Decide What Happens to the Business

Once you know whether the business is marital property and how much it’s worth, the next question is: what happens to it after the divorce? There are typically three main options:

1. One Spouse Buys Out the Other

This is the most common resolution. One spouse retains full ownership of the business and compensates the other for their share—either in cash, over time through a settlement, or by offsetting other marital assets (like the house or retirement accounts).

This allows the business to continue operating smoothly and ensures a clean financial break.

2. Sell the Business and Split the Proceeds

If neither spouse wants—or is able—to keep the business, selling it and dividing the profits is another option. This is often more practical if the business is difficult to operate without both spouses or if the valuation shows strong resale value.

However, selling can take time, and market conditions may affect the final sale price.

3. Continue to Co-Own Post-Divorce

In rare cases, some ex-spouses choose to continue running the business together. This requires a high level of trust, communication, and a clearly defined operating agreement post-divorce. While this option may work for some, it’s not typically recommended unless both parties are truly amicable and committed to professionalism.

While this is an option for some ex-spouses, the Court will not order this, absent an agreement from BOTH parties. When it is a marital business, the Court's are required to split it according to the first two options listed, however, the judge is allowed to enter an order, if both parties agree to continue to co-operate the business together.

---

Special Considerations for High-Net-Worth Divorces

When the business is part of a high-net-worth divorce, things get even more complex.

There may be:

• Multiple entities or subsidiaries

• International clients or assets

• Significant intellectual property or licensing agreements

• Executive compensation plans

• Tax and estate planning considerations

High-value businesses often require a multidisciplinary team—including a family law attorney, forensic accountant, tax professional, and financial planner—to ensure your interests are fully protected.

---

What If a Prenuptial or Postnuptial Agreement Exists?

If you and your spouse signed a prenuptial or postnuptial agreement, it could simplify things. These agreements often define:

• Whether the business is separate or marital

• How the business should be valued

• What percentage, if any, the non-owning spouse is entitled to

• Buyout terms in the event of divorce

If valid and enforceable under Florida law, the agreement will typically govern how the business is handled during the divorce.

---

Protecting Your Business During the Divorce Process

Here are a few key strategies to protect your business while divorce proceedings are ongoing:

• Maintain Accurate Records: Keep detailed records of finances, roles, and contributions.

• Avoid Major Financial Changes: Don’t make big business moves (like selling assets or taking on debt) without consulting your attorney.

• Establish Boundaries: Separate personal conflicts from business operations—especially if both spouses are still active in the company.

---

Final Thoughts: Plan Ahead to Protect Your Future

Divorcing while owning a business together can feel like navigating a storm—but with the right preparation, valuation, and legal guidance, you can make smart decisions that protect your livelihood and future. Whether you choose to buy out your spouse, sell the company, or find a creative solution that works for both of you, the key is to work with professionals who understand both family law and complex business interests.

Let Us Help Guide You

Dividing a business during divorce requires more than just legal knowledge—it demands strategy, experience, and an understanding of your financial goals. At Jarbath Peña Law Group, we help business owners and high-net-worth individuals navigate divorce with confidence and clarity.

Call us at 305-615-1005 or contact us online to schedule your consultation today.