Data from the state of Florida’s Vital Statistics Annual Report indicates that there were 74,931 divorces and annulments statewide in2019. During a marriage dissolution in Florida, asset division is a vital issue that must be addressed. Unfortunately, dividing marital property can involve a lot of complexities and result in potential hostilities, especially when a family business is involved.
If you are contemplating filing for a divorce and trying to determine how your family business will be valued and divided, consulting with an experienced Florida family law attorney is crucial for proper guidance. At Fournier Law, we are dedicated to offering knowledgeable and comprehensive legal guidance to clients on the legal matters of business valuation and property division. Our attorneys are available to discuss your personal situation and help you understand your legal options.
Our team at Fournier Law is proud to represent individuals and families in Tallahassee, Florida, Big Bend, and counties throughout Florida.
Business valuation can be described as the general process that is often used to determine the economic value of a business entity. Valuation of a business may be necessary to determine sale value, establish partner ownership, and for asset division in divorce proceedings.
Determining the fair value of a business requires adding business assets (such as inventory, property, and equipment) and subtracting any debts, liabilities, or taxes. During a Florida divorce, business valuation can be determined through the following approaches:
Determining the real value of a business through the income approach involves using the business's present value and potential earnings to assign a value to the company. The income statement on the business’s tax return can be used for the business valuation.
Determining the value of a business through the market approach involves using the market or industry standards to assign value to the company. Using the market approach may require comparisons with other businesses within the industry.
This requires considering both tangible assets and intangible assets to assign value to the business. Tangible assets of a business include property, inventory, equipment, vehicles, investments, and cash. Intangible assets include intellectual property, trade secrets, patents, and copyrights.
Florida is an "equitable distribution" state. Under this system, marital property must be divided equitably and fairly between both spouses. In order to ensure equitable distribution of a family business during the divorce proceedings, the following factors may be considered:
Business valuation may present certain challenges and issues, especially when determining the value of intangible assets. In such situations, some possible options to resolve challenges during the business division include:
An experienced attorney can work with a forensic accountant to review business information, including financial statements and tax returns, determine the real value of the company, and guide you through every step of the asset division and divorce proceedings.
Business valuation and division in a Florida divorce often involve a lot of complexities. Especially when such an establishment is a new business or startup with great potential, valuing and dividing such a business and its assets requires proper guidance from experienced legal counsel. A knowledgeable Florida divorce attorney can explore your available options and help you make key decisions.
With over 60 years of combined experience, our attorneys have devoted their careers to guiding clients in complex divorce matters, including valuation and division of family businesses. As your legal counsel, we will evaluate and determine the real worth of your business and ensure that it is divided equitably and correctly. Using our extensive experience and resources available at our disposal, we will guide you through every phase of the legal process and work to address your needs and concerns.