During the end of a marriage, the two parties will be planning to divide the marital assets and also provide for the children. For some, the family business is the most significant asset, but dividing it and determining its value can be tricky. Since child support calculations depend on accurate accounting of family finances, individuals in Florida who are divorcing and who have a family business may want to pay careful attention to how this asset is handled during the divorce process.
For starters, it can be helpful to know how much the business is worth. There are several methods of determining the worth of the business. During a legal proceeding, it can be helpful to include the services of a financial professional who has experience analyzing the value of a business using the financial statements. A spouse may also try to hide the value of the business in order to avoid or reduce spousal support of child support payments.
Additionally, there is the problem of double dipping. An ex-spouse may not be able to maintain both a share of the business and receive maintenance payments as well. Nor will an ex-spouse be able to claim the same expense as both a business and a personal expense.
In Florida, an accurate accounting on the family business and family income can affect child support calculations, which can have an impact on the child’s life for years to come. Understanding the big picture can sometimes be complicated. Many people choose to work with an experienced attorney who can advocate for a fair distribution of funds.
Source: wealthmanagement.com, “Three Pressing Issues For Business Owners Going Through a Divorce“, Mark Gottlieb, Jan. 30, 2018
