When A Business Is Part Of The Divorce Property
Dividing a business is a complex issue that demands knowledge of property ownership and division, personal goodwill and valuation. At Darla K. Snead, P.L. Attorney at Law, we have the experience and ability to provide the help you need.
What Needs To Be Determined?
Whether the business is a sole proprietorship, partnership, family business or another type, many components must be identified, such as:
- Whether the business is individual or marital property
- Income and profitability of the business
- Assets and liabilities
- The length of the marriage and contributions of each spouse to the business
- Comparable business sale pricing
- Liquidation value
Whenever any one of these facets is not duly measured, it can lead to an unfair valuation and thus an unfair division. Florida courts have broad discretion when it comes to assigning a value and dividing a business.
How To Determine The Value Of The Business
In some cases, the value of the business requires only an accurate picture of the income and the expenses. In other cases, forensic accountants or other experts may be required to determine the business’s fair market value given the equipment or assets of the business and the actual income (profit and loss) the business produces or can produce. Two things worth noting are:
- The value the owner or principal owner brings to the business is not a marital asset.
- A very important part of the valuation process is determining the date the business was valued.
We know that dividing a business can be a complex issue. We offer the support and guidance you need to do this in the most efficient and accurate way possible.
Get Experienced Business Division Guidance
At Darla K. Snead, P.L. Attorney at Law, we think like business owners. We understand which documents and information are needed to make accurate assessments. With over 50 years of combined experience, we have the experience and knowledge to help. When you’re ready to move forward with your divorce, call our office at 863-869-0245 or fill out our online contact form. We are on your side and will stand up for your rights.