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DIVISION OF BUSINESSES IN A FLORIDA DIVORCE
Divorce proceedings in Florida often involve the division of businesses. Courts typically effectuate the division of property and assets in a Florida divorce in such a manner as to allow the operating spouse to retain his or her ownership in the business. Florida Courts will not require spouses to remain in business together when one or both spouses do not want to continue to do. Courts will not award each spouse a one-half interest in a business and require them to continue to be business partners.
In a Florida divorce, courts will obtain a proper valuation of the business and award the business to one of the spouses. The court will then devise a plan of equitable distribution that is fair to both parties and that causes the least amount of interference with the business. The court will award the business to one of the spouses and require that spouse to fairly compensate the other spouse.
In a case captioned Bowen v. Volz, the lower court divided a business owned by a husband and wife. The trial court awarded each party a fifty percent interest in their business. The Florida Court of Appeal reviewed this decision and began by commenting on the lack of evidence that was presented to the trial court concerning the value of the business. The Florida Court of Appeal then reversed the trial court.
The Court in Bowen v. Volz stated that it is inappropriate to make a husband and wife remain the joint owners of a business after they are divorced. Awarding a former husband and a former wife a shared interest in a business is in effect requiring them to operate their business as partners. This is an intolerable arrangement. The appropriate remedy is for the parties to present a full and complete valuation of the business to the trial court and for the court to then award the asset to one of the parties and create a distribution plan which causes the least disruption to the business and is beneficial and practical for the parties.
To speak with a divorce attorney in West Palm Beach, Florida, contact the Lane Law Firm, P.A.
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