When two people are married and own a business together in Florida, there are some unique issues they need to resolve if they later decide to get a divorce. The ownership interest in the business may be considered property, and if so the court will attempt to divide it as it would with any other type of property the couple owns jointly.
When this is the case, a business valuation will usually need to occur. This can be a complicated process and may require the input of appraisers, accountants and other experts. Valuation is based on a four different factors:
- What the business owns and its debts: What the business owns may include real property, office buildings, office furnishings, office equipment, computers and inventory, as well as trademarks, intellectual property, copyrights or trade secrets. Any debts the business owes are considered liabilities and may reduce the company’s value.
- The business’s revenue: This involves examining the business’s income versus its expenses, and whether or not it makes a profit.
- Method of valuation: The market approach looks at the company’s earnings potential and what an investor might pay to purchase it.
- Date of the valuation: This can have a significant impact on the value of a business, as market conditions can change very quickly depending on the time of the year and the state of the overall economy.
Going through a divorce is never easy, and trying to divide a business in this process makes it even more challenging. With that in mind, it’s important to consult an experienced divorce attorney with Combs Greene, PA in Jacksonville.
Attorney Shane Herbert also contributed to this blog post.