Legal Question in Business Law in Florida

Under Florida family law, a spouse is entitled to a fair and equitable share of marital assets. The share depends on certain conditions of the marriage, dissolution, etc. So the wife would be entitled to consideration in the division of property, including the value of business, however, she would not be entitled to be a partner in the business without approval of other shareholders.

As a Franchise Attorney I have a somewhat different take on your question. Shareholders are not entitled to any assets per se unless or until the business is sold or wound down. The wife would only be entitled to the fair market value of her half of the value of the stock if the stock was a marital assets. The market value of most closely held corporations is speculative at best, since there isn't a public market for the shares. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

The answers given above are a fairly good indication of the results that would occur. However before any answer is given all facts are very important to the weight given to the answer. You have only a simple set of facts and it begs the question in that to give an answer it must first be assumed that no shareholder agreement or voting trusts exist which would otherwise give more power or control to the divorcing shareholder than the other two, and further that there are no side agreements with other creditors, major suppliers controlling or affiliated groups who designate by contract who must remain as shareholders at all times- this could have a drastic effect on the continuation on the continuation of your business if the major creditor or even landlord of the realty could evict or eject the entity should the shareholder makeup be changed or their shares be diluted any; there could be anti merger /coversion type clauses, also in these side agreements.

Also you must consider if there are shareholder loans or other internal control mechanisms in place that would shift the voting power e.g. when the divorcing shareholder is a creditor and has a power of attorney coupled with an interest over the other shareholders' shares.

You should get with legal counsel since the assets could also consist of valuable licenses or rights such as the Franchise counsel alluded to above wherein the license to operate or continue the trade business was held by the divorcing shareholder and that is also taken over by the estranged spouse!

If this helps any please mark the tab up below.