QUESTION

Can a spouse claim part of an incorporated business, even though his/her name is not mentioned in the state's officer/director detail?

Asked on Aug 14th, 2014 on Divorce - Florida
More details to this question:
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1 ANSWER

Family Law Attorney serving Plantation, FL
3 Awards
  The short answer is yes.  The longer answer is the "yes" is contingent on many different factors.  The first factor is whether the business was formed during the marriage.  In that instance (barring circumstances such as the start -up capital was from a non-marital asset) then the entire business is marital.     The next consideration is what value, if any, does the business have.  This is a more difficult question to answer than you may think.  Typically attorneys hire forensic accountants and/or business valuators to make this determination.  Even if the business has a value, it must then be determined what constitutes the spouse's personal goodwill versus the enterprise good will.  An individual's personal good will is not subject to equitable distribution.  By way of example, if your spouse was a painter and did not have any other employees, the business might be all his personal goodwill and have little marital value.    Assuming there is personal goodwill, then next issue become determining how the spouse's share will be paid.  Frequently there cannot be a cash payout.  Sometimes parties swap one asset for another.  For example, the non-business owner may keep the house, if there's equity,  and the other spouse keeps the business.   As you can see, this can get complicated, and it is best to seek a consultation with an attorney who can review the specific facts of your case. Best of luck, Cindy Vova Law Office of Cindy S. Vova, P.A. 8551 West Sunrise Blvd., Suite 301 Plantation, FL 33322 info@vovalaw.com 954-316-3496  
Answered on Aug 17th, 2014 at 7:03 PM

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