The Impact of Divorce on Small Business Owners in Orlando

Going through a divorce will send the most stoic among us into emotional turmoil. There is the highly personal nature of divorce to consider, but there are also significant financial aspects that should not be overlooked as well. This can be especially true for small business owners. When you are a small business owner, your business is so much more than your livelihood. It is something you have poured yourself, your time, and your money into and divorce can feel like you are putting all of that at risk. As divorce attorneys in Orlando, we understand the unique challenges that small business owners face when going through a divorce. As such, we want to help you by discussing the potential impacts a divorce can have on a small business owner in Orlando. It can help you prepare for confronting these impacts and navigating the challenges that can arise along the way.

Orlando Divorce Attorneys

One of the most significant concerns for small business owners going through a divorce is how their business will be divided. In Florida, marital assets are typically subject to equitable distribution, which means that assets acquired during the marriage are generally divided fairly, but not necessarily equally. This can include the value of a business, which can be a complex and contentious issue to resolve.

Determining the value of a small business can be complicated, to say the least, and necessitate the expertise of financial professionals such as forensic accountants or business valuation experts. Factors such as revenue, assets, liabilities, and future earning potential may all come into play when assessing the value of a business for the purposes of divorce proceedings.

So, one of the big potential impacts of a divorce on a small business owner can be that the ownership structure of the business changes. Their former spouse may acquire a vested ownership interest in the business. Alternatively, the business owner may be given the option to buy out their former spouse, if they can financially manage that type of arrangement.

Another potential impact of divorce on a small business, beyond ownership, is the change that can happen to the business’s operations. Should the soon-to-be former spouse acquire an ownership interest in the business, they may want to change how the business is operated. Small business owners can help protect their business throughout the divorce process by taking steps such as maintaining accurate financial records, safeguarding intellectual property, and exploring options for buyout agreements or other arrangements to retain ownership and control of the business.

Tax implications should also be considered by small business owners going through a divorce. Divorce can have significant tax implications for these owners, particularly when it comes to dividing assets or transferring ownership interests. It can be critical to consult with tax professionals in order to understand the tax consequences of various settlement options and develop strategies to minimize tax liabilities.

Trusted Orlando Divorce Lawyers

At Bernal-Mora & Nickolaou, P.A., we are committed to helping small business owners navigate the complexities of divorce using our experience and expertise. Our dedicated team of legal professionals understands the unique challenges facing business owners and is dedicated to protecting our clients’ interests throughout the divorce process.

About the Author
Andrew Nickolaou, Esq., B.C.S., is a founding partner at Bernal-Mora & Nickolaou, P.A. He practices almost exclusively in divorce, marital and family law. Andrew and his partner, Ophelia Bernal-Mora, Esq., B.C.S., joined forces in March 2016 to form the unique and boutique husband and wife family law team at Bernal-Mora & Nickolaou, P.A. Together, Andrew and Ophelia take a practical and team-based approach to all of their cases and clients to deliver the highest quality experience and representation.