Business Valuations and Divorcing in Florida
If you’re divorcing in Florida and you are concerned about the process of asset and property division, particularly how it will apply to a business, the first step you should make is to seek legal counsel and representation. Higher net worth couples, particularly business owners, will want to ensure that their assets are accurately represented and protected prior to dividing those assets. At the law firm of Nilo J Sanchez & Associates, we have the experience you’ll need if a business will be a part of your divorce settlement.
How are Businesses Valuated in a Florida Divorce?
Forensic accountants and business valuation experts typically use these methods for valuing a business in a Florida divorce:
- Income-based approach values a business based upon the company’s past and current earnings, as well as projected future earnings.
- Asset-based approach values a business based upon the value of a business’ assets less any business liabilities.
- Market-based approach determines the value of a business by comparing it with other similar businesses sold in a free market economy.
When representing clients who own or have stake in a business or multiple businesses, a business valuation expert can examine the recent sales of other, similar companies if available. Forensic accountants are frequently utilized when we represent clients in high net worth divorces
Businesses Acquired Before Marriage
Generally, if a business is acquired prior to marriage, that business will not be subjected to equal distribution as it is not considered marital property. An existing and well constructed pre-nuptial agreement that sought to protect any businesses that you or your spouse built during your marriage, may also change the outcome of a divorce settlement.
Depending on how air tight your pre-nuptial is and if it applies to your current circumstances, you may not be subjected to equitable distribution, even if a business is acquired before marriage or even post matrimony. If the business was acquired after you were married, a situation may arise where a business was acquired before marriage and yet both people equally contributed to and enriched the business throughout the marriage. Nilo J Sanchez & Associates will be prepared to protect your rights if this applies and your business ends up being considered marital property. Well crafted pre-nuptial and some post-nuptial agreements may add a level of protection to prior, current or future business investments you make during your marriage. If you or your spouse owns a business or multiple business assets, business valuations will be a critical process in your divorce settlement.
Read: Business Valuations in Florida Divorces
Unequal Division of Assets in Contested Divorces
Contact Nilo J Sanchez & Associates
If you are concerned about about how equitable distribution will apply in your contested or high net worth divorce, please call 813-879-4600 to schedule a consultation or leave us a secure message below.