Dividing Business Interests During A Florida Divorce

When spouses own a business or purchase stocks during their marriage, dividing such property becomes much more difficult. The court must determine whether the business or its shares constitute marital or non-marital property and, if the latter, how it will be divided. The case we’re about to review illustrates the difficulties that can arise during the division of a business.

Background of the case 

The parties were dissolving their marriage, and, as part of that process, the trial court was required to partition several marital properties. Among the properties the couple had acquired during their marriage were business interests and stocks that required a proper valuation and characterization.

As is common in divorce cases involving significant assets, the couple could not agree on the value of some of the interests. Consequently, during the case, there was a need to examine the evidence presented by both sides regarding how the property’s valuation and characterization would be determined.

Some of the interests were finally taken into account in the division and valuation of the marital property. However, one of the parties was dissatisfied and filed a motion challenging the trial court’s decisions.

The appeal 

The Second District Court of Appeal considered the trial court’s equitable distribution of the assets at issue. The appellate court highlighted that, under Florida Statutes, the trial court must make adequate factual findings regarding the classification and valuation of assets. Prior to distributing the assets, it is necessary for the court to classify whether the asset belongs to the marital estate or was the individual property of one of the spouses. Then the court could set a value based on the presented evidence.

The 2nd District found issues with certain parts of the trial court’s analysis regarding business and stock interests. The findings of the trial court regarding the valuation of certain properties for the purpose of equitably distributing the assets were not adequately supported by evidence.

In light of the above, the appellate court held that certain determinations in the final order must be reversed and remanded to the trial court for further action.

Key takeaways 

The decision in this case underscores the significance of valuation evidence in a number of Florida divorce cases involving one or more parties with business interests, stocks, and other complex assets. It does not matter whether both sides recognize that a certain asset is marital; what often matters is value, and that can be a contentious issue.

The case at hand serves as a lesson for all couples in Florida going through a divorce who own businesses or significant financial assets. An inaccurate valuation might cause serious problems later, since it may be contested on appeal.

Therefore, it should be understood that this case confirms an essential rule of Florida divorce procedure: only after a proper valuation is performed will the court manage to distribute the marital estate equally between the two people.

Talk to a Tampa, FL, Divorce Attorney Today 

Faulkner Law Group, PLLC, represents the interests of Tampa residents during their divorce. Call our Tampa family lawyers today to schedule an appointment, and we can begin discussing your case immediately.

Source:

case-law.vlex.com/vid/street-v-street-case-889993707