Business Valuation Lawyers in Sarasota, FL
Protect Your Finances When Valuing Your Business in Divorce
In a divorce, one of the most important issues you will face is how to value and divide your business assets. This complex matter requires the assistance of an attorney with experience in finance, marital law, and business valuation. At Schipani, Norman & McLain , P.A., we have all three. Attorney Phil Schipani has achieved the highest training and level of expertise through the Florida Bar as a Board-Certified Marital Law attorney. Our legal team has decades of combined experience in all aspects of divorce, even the most complex cases.
Whether you are the sole proprietor of a business or professional practice, own one jointly with your spouse, or are the spouse of a business owner, we can assist you. Our Sarasota divorce lawyers have reached thousands of favorable outcomes for clients with high-asset portfolios. We will guide you through the valuation process, working tirelessly to obtain the most financially beneficial results possible.
Discuss your legal needs for business valuation in a Florida divorce with one of our Sarasota business valuation attorneys today. Call (941) 499-8154 or contact us online. Serving Sarasota, Bradenton, and other Southwest Florida communities.
How Do Florida Courts Value and Divide Businesses?
Valuation of a business in a Florida divorce is often the most complicated and divisive of issues. It can open the door to manipulative methods computed for the advantage of one or the other parties. Because of this, it should be valued by neutral financial experts without bias or influence. To that end, several methods can be used to determine the value of a business for divorce purposes.
Florida businesses that may need valuation in a divorce can include sole proprietorships, partnerships, LLCs (limited liability companies), S corporations, and C corporations.
Florida courts have three methods that are used to value a business in a high-asset divorce. These include:
- The cost-based method: With this method, the court evaluates assets and liabilities to determine the business’s value.
- The market method: Company transactions, stock market information, and other transactional data determine business value in this method.
- The income method: The court uses this method to determine value based on a company’s current and projected earnings.
Does the Court Have to Value Every Business?
If a business counts as marital property, which is property acquired during the marriage, then it is subject to division. Spouses have the opportunity to divide business assets between themselves out of court by using mediation or collaboration. But if private negotiations are not successful, then it will be up to the court to determine value and how best to divide the business in a way that is fair and equitable to both parties.
The court may award the business completely to one or the other of the spouses and make up for this by assigning other assets to the spouse who did not receive any portion of the business. The court may also award portions of the business to both spouses in some percentage considered fair. If you and your spouse can agree on how to divide the business, courts will generally approve your agreement as long as it is clear that one party is not being taken advantage of by the other.
It must be remembered that, before any business valuation can begin, a business must first be identified as marital property. Separate property is not subject to division in a divorce. However, separate property may be commingled into marital property which would then subject it to equitable division of some kind.
Contact Schipani, Norman & McLain , P.A. to learn more about how we can assist you with a business valuation for your divorce. Call (941) 499-8154 today.