Does A Florida Dissolution Of Marriage Require A Corporation?

Florida’s equitable distribution scheme requires a divorcing couple’s marital assets and debts to be equitably divided between the parties to the divorce. This includes businesses acquired during the marriage, whether acquired individually by either spouse or jointly. In Florida, marital assets are typically distributed equally, unless there is a justification to deviate from a 50/50 split. If a business is formed during the term of the marriage, it can be considered marital property subject to division in a divorce.

To obtain dissolution of marriage in Florida, at least one of the people involved in the divorce must reside in the state for at least 6 months before filing a Petition for Dissolution of Marriage. Florida’s no-fault divorce statutes mean that filing does not require proving fault by either spouse; instead, a marriage can be dissolved because it is “irretrievably broken” or due.

Florida’s LLC statute allows a member to be involuntarily dissociated through unanimous consent of the other members and the fact it would be unlawful to carry on the marriage. However, in all dissolutions of marriage granted on the basis of incapacity, the court may require the petitioner to pay alimony pursuant to the provisions of s. 61. 08.

There are three recognized business entities in Florida: the corporation, the limited liability company, and the partnership. Most businesses formed in Florida can be considered marital property subject to division in a divorce if they were started during the term of the marriage. Before the valuation of any business in a Florida divorce can begin, the business must first be classified as either separate or marital property. A determination is made prior to the filing of a divorce action on whether that business entity should be joined as a third-party defendant in your dissolution.

For a family law judge in Florida to adjudicate a spouse’s claims over a corporate entity or trust, the spouse must satisfy due process requirements.

Is A Business Considered Marital Property In Florida?

In Florida, businesses generally qualify as marital property if they were either started or acquired during the marriage, regardless of which spouse manages them daily. Conversely, if a business was established before the marriage, it may initially be viewed as separate property. Florida law categorizes all assets procured during the marriage as "marital" assets, making them subject to equitable distribution in the event of divorce, unless specifically exempted. This includes goodwill that is separate from the owner's reputation, recognized as enterprise goodwill and classified as marital property.

Florida operates under equitable distribution principles, which prioritize a fair division of assets over a strict 50/50 split, based on what the court considers just. Assets and debts accrued during the marriage are classified as marital property, regardless of whose name is on the title. A business may also be deemed marital property if the other spouse contributed to it during the marriage, whether through time or financial resources. Courts ascertain what percentage of the business belongs to each spouse, emphasizing fair distribution rather than equality.

If proceeds from a separate business support the marriage or intermix with marital assets, they may also be recognized as marital property. Thus, understanding how assets are classified is crucial in Florida divorce proceedings.

What Are Considered Marital Assets In Florida?

In Florida, marital assets encompass all property acquired by either spouse during the marriage, regardless of whose name is on the title. According to Florida Statute § 61. 075, marital properties consist of assets acquired and liabilities incurred during the marriage, whether individually or jointly by either spouse. In the event of a divorce, these assets and liabilities are subject to "equitable distribution." This means that a court will assess and divide marital property fairly, even if the assets are titled in one spouse's name.

Marital property typically includes a wide range of items, such as homes, vehicles, investments, retirement accounts, and even gifts exchanged between spouses. Furthermore, both vested and non-vested retirement benefits accumulated during the marriage are considered marital assets. All real property held jointly, and any increase in value of jointly owned businesses also qualifies as marital property. In essence, nearly everything acquired during the marriage is presumed to be marital, making it crucial for couples to understand their assets during divorce proceedings.

Certain specific rules govern the classification of gifts, inheritances, and unique financial circumstances. Thus, proper classification of assets as marital or non-marital is vital for equitable asset distribution in divorce cases.

How To Protect Your Assets From Divorce In Florida?

To protect your assets during a divorce in Florida, understand the distinction between marital and non-marital assets and assemble your financial documentation. Open individual accounts to maintain the separation of your assets and assess your beneficiary designations. Preserve evidence of separate property and consider obtaining professional valuations. It may also be prudent to explore a prenuptial or postnuptial agreement. Begin by reviewing the divorce judgment to clarify the classification of financial assets and debts.

Implement a comprehensive asset protection plan to guard against equitable distribution decisions made by the court. Remember, Florida law mandates equitable distribution, meaning a fair, though not necessarily equal, division of marital assets and liabilities. To further safeguard your personal assets, avoid commingling them with jointly owned properties, and consider utilizing trusts or a Domestic Asset Protection Trust (DAPT).

Seeking legal guidance from an experienced attorney can also enhance your asset protection strategy. Together, these strategies can bolster your financial security as you navigate the complexities of divorce.