When you are going through the stress of the divorce process, you may be concerned about your assets. The assets that you value the most, including your business, could be one of the most important factors on your mind. You may also be concerned how various aspects will be handled during the process, such as the handling of business loans.
At Robert Sparks Attorneys, we take your divorce seriously and want to advocate for you during the divorce process in Florida. We understand Florida divorce laws and will provide you with the knowledge and resources that you need to get back on your feet. Please today so that we can guide you to the best possible outcome during this difficult time in your life.
Determining Liability of Loans and Business Debts in a Florida Divorce
When it comes to dealing with your shared business during a Florida divorce, you may wonder who is liable for loans that were borrowed or any debts that the business accrued. You may discover that you or your spouse are personally responsible for any of these loans or debts under these circumstances:
No Limited Liability: If you are considered a sole proprietor or general partner in the business with your spouse, this means that you have personal liability regarding business debts. This means that you and your spouse are on the hook for your personal debts and those that you obtained through a business, such as taking out a loan.
However, the laws are different if you are a limited partner or your business is an LLC. Under these circumstances, you may not be responsible for the debts of your business alone. It is important to understand how the business operates as it concerns debts and loans.
Cosigned Business Debt: Perhaps you cosigned or personally guaranteed a loan or debt in your business. If you are unable to pay back these debts or loans through the business later on down the road, you will be personally responsible for paying your share.
Dividing Your Business During a Florida Divorce
On top of the loans that you have taken out of a business, you may be concerned about how your business will be divided between you and your spouse during a Florida divorce. Under equitable distribution laws in Florida, property division will come into play – including that of a business. In many situations, unless you and your spouse were equal partners in the business, it will typically be awarded to the spouse who was the owner and operator of the business.
This does not mean that you will be off the hook for any loans that you took out through the business, however. You may have to pay back these loans or relinquish property that is of equal value to the loans so that the division is treated as fairly as possible. You and your spouse will have to decide what works for the business now that you are getting divorced.
Contact a Tampa, Florida Divorce Lawyer Today
At Robert Sparks Attorneys, we understand how challenging and complex a divorce can be in Florida when it involves a business. Divorce involving any type of property division is never an easy thing to handle, which is why you may need legal assistance during these difficult times. We want you to be treated fairly during this process, which is why we will stand by your side every step of the way. Please contact our Tampa divorce lawyers today for a free and no-obligation case review.