Author: WB Admin

Property Division When One Spouse Owns a Business: What to Expect

Posted on by WB Admin

Divorce is complicated under any circumstances. When one spouse owns a business, it gets harder. The business may be the couple’s most valuable asset, and one of the most disputed. Florida courts follow a specific legal framework for handling business interests in divorce, and understanding that process can help you prepare. 

Marital vs. Non-Marital

Florida divides property through equitable distribution under Florida Statute §61.075, which starts from a presumption of equal division, though courts can deviate based on circumstances. The first question is whether the business counts as a marital asset at all.

A business started before the marriage may seem like it should belong entirely to the spouse who built it. Not necessarily. If the business grew during the marriage through either spouse’s efforts or with marital funds, that growth can be treated as a marital asset subject to division. Commingling personal and business finances makes this even messier.

A business launched after the wedding date is generally presumed marital. But like most things in family law, the facts matter enormously.

How Florida Values a Business

Once a court identifies a business interest as marital property, it needs a dollar figure. Under the 2024 amendment to §61.075, Florida now requires courts to value closely held businesses at fair market value, defined as the price a willing buyer and seller would agree on without pressure from either side.

That same amendment clarifies how courts treat goodwill. Enterprise goodwill, the value tied to the business itself, such as its reputation, location, and customer base, may count as a marital asset. Personal goodwill, tied only to the owner’s individual skills or relationships, generally does not. For professionals like doctors, lawyers, or contractors, that distinction can make a real difference in a divorce.

Valuation disputes are common. Both sides often bring in financial experts who reach different conclusions. Courts weigh the competing analyses and decide.

Talk to Our Team Before the Process Gets Away From You

Business valuation in divorce moves fast once litigation starts. The earlier you understand where you stand, the better positioned you are.

Wickersham & Bowers handles family law matters across Florida, including divorces involving closely held businesses, professional practices, and complex assets. Call us at 386-252-3000 or fill out our contact form to schedule a consultation.

Using Spousal Lifetime Access Trusts (SLATs) Under the New 2026 Estate Tax Exemption

Posted on by WB Admin

Estate tax planning looked very different a year ago. Families were racing to act before a looming deadline, the feared “sunset” that would have cut federal exemptions roughly in half. Then Congress stepped in. 

The One Big Beautiful Bill, signed on July 4, 2025, set the federal estate and gift tax exemption at $15 million per individual starting January 1, 2026. With proper planning, many married couples can shield up to $30 million. It’s permanent, indexed for inflation after 2027, and removes the uncertainty that drove so much urgency in prior years.

So does that mean married couples in Florida can relax? Not exactly. A larger exemption doesn’t make planning irrelevant; it changes the math, but the tools still matter. One worth knowing is the Spousal Lifetime Access Trust, or SLAT.

How a SLAT Works in Plain Terms

Think of it as a one-way transfer with a built-in safety net.

One spouse, the donor, moves assets into an irrevocable trust. Once funded, those assets leave the donor’s taxable estate for good. “Irrevocable” is the keyword: There’s no reversing it later if circumstances change.

What makes couples willing to take that leap? The other spouse, called the beneficiary, can still receive distributions from the trust. Medical bills, everyday living costs, and education expenses. That indirect access keeps the wealth in the family’s orbit even after the legal ownership is gone.

Then there’s the growth angle. Anything those trust assets earn or appreciate stays outside the taxable estate. A business interest that doubles in value, real estate that climbs over 20 years; that upside builds without adding to the estate tax exposure. For Florida families with appreciating assets, the difference can be substantial.

What Can Go Wrong

If the beneficiary spouse dies, that access to trust assets ends. The same goes for divorce. The donor loses their indirect connection to those funds immediately.

Couples who want both spouses to fund separate SLATs for each other face a specific legal trap: the Reciprocal Trust Doctrine. The IRS can treat mirror-image trusts that are too similar in terms and structure as if the gifts were never made at all. 

Talk to Our Team About Your Situation

No single estate planning strategy fits every family. Whether a SLAT makes sense depends on your assets, your marriage, your long-term financial needs, and goals that are specific to you.

At Wickersham & Bowers, we work with individuals and families across Florida on trusts, wills, and estate planning that’s built around real circumstances. Call us at 386-252-3000 or fill out our contact form to set up a consultation.

Modification of Final Judgments When Adult Children Develop Disabilities

Posted on by WB Admin

Most divorce judgments lock in support terms based on what everyone knows at the time. Life does not always stick to that script. Sometimes an adult child who was healthy at the time of divorce later develops a disability that limits work capacity and creates a need for public benefits such as SSI or Medicaid. 

When that happens, families often wonder whether old orders can change and how financial support can continue without breaking benefit rules. Here is what to understand under Florida law and federal benefit standards.

When Disability Changes the Support Picture in Florida

Florida courts keep continuing jurisdiction over child support. A parent may ask the court to modify an order when a substantial change in circumstances occurs. A later-in-life disability that creates dependency can qualify. Courts look closely at medical evidence, functional limits, and financial need before adjusting support.

If the child now depends on needs-based benefits, the structure of support becomes just as important as the amount. Direct payments to the adult child may count as income for SSI purposes and reduce or eliminate monthly benefits. 

Past-due support, if paid directly, can raise similar eligibility concerns depending on how funds are received and held. That makes coordinated legal and benefits planning essential before anyone changes payment flows.

Using Special Needs Trusts and ABLE Accounts the Right Way

A third-party special needs trust allows parents, including divorced parents, to set aside funds for a disabled adult child without placing assets in that child’s name. Because the trust owns the funds, they usually do not count toward SSI and Medicaid resource limits. The trustee can then pay for approved supplemental expenses such as therapy, education support, or adaptive equipment. A well-structured third-party special needs trust typically avoids any Medicaid reimbursement requirement after death.

ABLE accounts are tax-advantaged accounts for qualified individuals with disabilities. They allow limited annual contributions and capped balances while preserving benefit eligibility. Families often use ABLE accounts for smaller, flexible spending needs and trusts for larger or long-term funding.

Review Your Orders and Planning Tools Now

Support orders and benefit rules do not always line up automatically after a late disability diagnosis. We help Florida families review existing judgments, explore modification options, and coordinate support with special needs planning tools. Call us at 386-252-3000 or fill out our contact form to discuss your situation.

Portability Elections and Reverse-QTIP Trusts: Maximizing the Unified Credit When Spouses Die in Rapid Succession

Posted on by WB Admin

When a married couple dies within a short time of each other, executors face nuanced federal estate tax decisions. Two important tools in this space are the portability election under Internal Revenue Code § 2010(c) and reverse QTIP elections for generation-skipping transfer (GST) purposes. These elections affect how much of each spouse’s unified credit (commonly called the estate tax exemption) and GST tax exemption survives to benefit the family. 

In this post, we explain these concepts and how they interact for estates with compressed timelines.

Portability

Under federal law, each person has a unified credit or applicable exclusion amount that shelters a portion of their estate from federal estate tax. If the first spouse to die does not use their full exemption, the unused portion, the Deceased Spousal Unused Exclusion (DSUE) amount, may be transferred to the surviving spouse through a portability election.

To elect portability, the executor files Form 706 by the estate tax deadline, usually nine months after death, and may request a six-month extension. A properly prepared, on-time return locks in the election, and it is rarely reversible. The transferred unused exclusion (DSUE) then becomes available to the surviving spouse to offset taxable gifts made during life or property included in their later estate.

Reverse-QTIP Trusts for GST Tax Planning

A Qualified Terminable Interest Property (QTIP) trust allows property to qualify for the federal marital deduction while keeping it in trust for beneficiaries other than the surviving spouse. Normally, assets in a QTIP trust are included in the surviving spouse’s estate and thus get a new step-up in basis at their death. 

For GST tax planning, a reverse QTIP election can be made so that the first spouse’s GST tax exemption applies to the trust. This preserves the GST exemption for transfers to grandchildren down the line, even though the GST exemption itself is not portable.

Make the Right Filing Decisions Early

When two spouses pass within a short window, early tax return elections can directly affect how much federal estate and GST exemption survives for the family. Choices tied to § 2010(c) portability and any reverse QTIP treatment carry lasting consequences once filed. If you are handling a Florida estate under tight timelines, we can walk through the options with you. Call 386-252-3000 or use our contact form to start the conversation.

Hidden Income in Self-Employment Divorces

Posted on by WB Admin

Self-employment can turn a Florida divorce into a numbers problem fast. A W-2 paycheck tells one story. A business bank account, credit card, and “write-offs” can tell another. When support or alimony turns on income, the court must separate real business expenses from personal spending that simply took a detour through the company.

This post explains how Florida defines business income, how “lifestyle” evidence can matter, and when a court may impute income if someone claims they earn less than they reasonably could.

Separate “Business Income” From Personal Spending Dressed as Expenses

Florida child support law counts income from self-employment and closely held businesses, calculating it by taking total revenue and subtracting only expenses that are reasonably necessary to generate that income.

That definition sounds simple, but disputes usually start here. A personal vehicle, travel, meals, or a home office can carry mixed use. The court can look past labels and ask a practical question: Did this expense truly help generate business income, or did it mainly support a personal lifestyle?

Clear records help. So does consistency between tax returns, bookkeeping, and what you list on your financial affidavit.

Use Lifestyle Evidence to Cut Through “Expense Noise”

Lifestyle evidence means proof of how someone lives; things like rent or mortgage payments, vehicles, travel, private school tuition, large purchases, or recurring transfers to savings. It does not replace financial documents. It supports them.

When a self-employed spouse reports low income but keeps spending at a high level, the other side often uses:

  • bank and credit card statements (personal and business)
  • payment apps and merchant records
  • loan applications and financial statements
  • business ledgers that show owner draws and reimbursements

This evidence can expose patterns like personal bills paid by the business, unusually high “business” reimbursements, or cash deposits that never show up on a profit-and-loss statement.

Know When Florida Courts May Impute Income

Imputed income means the court assigns an income level based on earning capacity instead of reported earnings. Florida law allows imputation when a parent’s unemployment or underemployment is voluntary, absent incapacity or circumstances beyond the person’s control. The judge can look at work history, qualifications, and local earning levels when setting a number.

Wickersham & Bowers handles Florida divorce matters involving support, custody, and financial disputes. Call 386-252-3000 or fill out our contact form.

Estate Planning for Owners of LLCs and Closely-Held Businesses

Posted on by WB Admin

Owning a Florida LLC or closely held business adds a layer to estate planning that many standard wills and trusts do not cover. Your plan might say who inherits your ownership, but your operating agreement can control who steps into your shoes as a “member” (an owner with voting/management rights).

Florida law also treats a member’s death as a dissociation event unless the governing documents address what happens next. This post explains how to line up your estate documents with the business documents, so your family and co-owners do not face avoidable disruption.

Know What Transfers at Death (And What Does Not)

Florida’s LLC statute distinguishes a “transferable interest” from full membership rights. A transferable interest generally tracks the right to receive distributions, not the right to manage the company.

That distinction matters because a beneficiary who inherits an interest might receive money but still lack authority to vote, access information, or run day-to-day operations unless the operating agreement allows admission as a member. The operating agreement binds members and can bind transferees as well, so the document can shape outcomes even when someone never signed it.

Build Transfer Restrictions and Succession Rules That Match Your Estate Plan

Many agreements include transfer restrictions; for example, requiring approval before a new owner joins. Florida law supports these restrictions and can treat a transfer that violates them as ineffective when the person has notice of the restriction.

You can reduce friction by coordinating:

  • Operating agreement succession language: Admission standards for heirs, valuation method, and buyout triggers.
  • A buy-sell structure: Who can purchase the interest, timelines, and funding (often insurance).
  • Your will or trust: Who receives the interest and who carries authority to act quickly.

Florida law also lets a deceased member’s legal representative exercise the member’s rights to settle the estate, including any power the member had to give a transferee the right to become a member. Clear documents make that authority easier to use.

Call Us to Coordinate the Documents Before A Crisis

Wickersham & Bowers helps Florida clients build estate plans using tools like wills, trusts, and powers of attorney, and we also guide families through probate when needed. If you own an LLC or closely held business, we can review your operating agreement alongside your estate plan and flag gaps that could cause delays or disputes. Call us at 386-252-3000 or fill out our contact form.

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