If you and your spouse are heading for divorce in the state of Florida, you may be wondering how to properly divide your valuable assets, namely, your business.
A business valuation can put your mind at ease by helping you ensure that this asset gets divided accurately.
What is a business valuation?
A business valuation is an assessment of your business as a whole. This assessment factors in various things like location, the potential for income growth and diversity among your products, services and clients to determine your business’s overall value. There are several methods of determining your business’s value, including liquidation value, book value, past earnings, market value, market capitalization, multiples of earnings and discounted cash flow.
Why do I need a business valuation and who handles the process?
A business valuation can help make sure that you and your soon-to-be-ex each receive an appropriate share of the business in question. Without a valuation, your business cannot be accurately divided. There are a couple of ways to obtain a business valuation. Perhaps the least controversial method of valuation is for you and your spouse to jointly hire a third-party valuation expert to bring you an unbiased value. Alternatively, both you and your spouse can hire your own forensic accounting experts and negotiate based on the numbers each expert presents.
Obtaining a business valuation can help your high-asset divorce go a little smoother and can help you make sure that you and your partner receive fair shares of your business.