Running a business from home is often the first step for aspiring Florida entrepreneurs and small business owners. If divorce looms in your near future, you may worry about losing your company in the settlement. Depending on your situation, you may be able to prevent that from happening.
The Capitolist reports that recent legislation broadens the definition of home-based businesses. Virtually all businesses have value. However, several factors affect whether you can avoid splitting the ownership in a divorce.
Not all assets are equal. A hundred dollars in cash is not the same as $100 in business assets, especially after considering taxes. When looking at tangible assets, even if two of them carry the same value, the cost basis may differ. This is the same issue that may occur when splitting a traditional 401(k) or stock.
If the company is yours, but you and your spouse jointly own the family home, you may compromise. Do your clients visit your physical location, or do you sell entirely online? If you conduct business only online, you might decide that maintaining 100% ownership of your business outweighs the desire to stay in the house. Under these circumstances, you may sell the home and divide proceeds after factoring in your company’s value. Another option is that your ex might decide to keep the house while you keep the business.
Even amicable divorces involve a lot of give and take. If you own a business, even if it is home-based, it can complicate the proceedings further. Understanding your options and how taxes, fees and fines affect various assets can help you negotiate a settlement that best fits your situation.