Chadwick M. Layton, Esq.[i]
Harvey Waddell & Layton, P.A.
STEPS TO PROTECT YOUR SMALL BUSINESS IN DIVORCE
Often times, where a small business owner/spouse is able to show that the business itself and any value created by the business is reliant upon the presence of that business owner, this creates a strong presumption in favor of the owner/spouse receiving 100% of the business in the divorce proceedings.
The question from the business/owner spouse facing a divorce then becomes, how do I show that the business is simply an extension of me and it relies upon my goodwill, my skills, my reputation and my past and future efforts?
There are many strategies which may be employed by counsel to accomplish the important task of protect the small business owner/spouse in divorce.
Some potential steps include making sure that the business owner/spouse pays himself or herself a competitive salary from the business.
Another protective measure by the business owner/spouse is to set up bank accounts for the small business which are not accessed by the non-owner spouse and are not co-mingled with personal funds. Counsel and the business owner should work together to assure a clear business structure exists to show that the small business is an asset of the owner/spouse.
Furthermore, the business owner and legal counsel may gather important discovery documents to show that the business has traditionally been under the control of the owner/spouse throughout the marriage.
A small business that is shown to be maintained and operated primarily by one owner/spouse during the marriage can provide a strong basis for the owner/ spouse to receive 100% of the small business in the divorce.
There are many legal factors that must be taken into account to properly address a small business in divorce and to work towards a settlement which distributes 100% of the business to the owner/spouse.
The business type, structure of the small business and relationships of the business are all important factors that must be addressed by divorce counsel to achieve the goals of the small business owner/spouse in a divorce action.
Our law firm is experienced in protecting small business owners in divorce. We have a proven track record of guiding small business owners successfully through divorce.
We understand that our client has worked all of their life to build a successful small business, the law firm they choose must have the experience and drive to protect their small business in divorce.
[i] Chadwick M. Layton is a partner and shareholder at Harvey Waddell & Layton, P.A., located in downtown Lake Worth.
Mr. Layton is also a member of the Florida Bar Family Law Section and the Susan Greenberg Family Law American Inn of Court of the Palm Beaches, further information is available at www.LaytonLawOffices.com or by calling our office to schedule an initial consultation.
Phone (561) 585-4631