Determining the value of a business during a divorce
If a Florida couple decides to divorce and wants to divide their property, they will need to figure out how much their assets are worth. This process can be a complicated when one or both spouses own a business. Depending on the situation, the couple will need to get a calculation of value or a full valuation of their business.
It is important to determine an accurate value of a business when a couple is divorcing. Calculations of value are more appropriate for out-of-court negotiations or mediations. They are less expensive, but they are also more limited in their scope. These give an estimate of the business’s value and are less certain than full valuations.
While full business valuations are costlier, they should be used when cases will proceed through court or arbitration. Since they have a greater degree of accuracy, judges and arbiters are able to rely on them. Full valuations are also good choices for very complex businesses, but they may not be necessary for couples who can amicably reach an agreement. A couple’s individual circumstances will dictate which is the better option for them.
Property division in a divorce may be more complicated when the couple has accumulated multiple different types of assets such as businesses, retirement accounts, stocks, real estate and other holdings. A person whose divorce will be a high-asset matter may want to seek the help of a family law attorney. A lawyer may help make sure that the client receives a fair share in any negotiated settlement, mediation, arbitration or trial. The attorney could also determine whether a calculation of value or full valuation is needed.