In Florida, a business or corporation is part of equitable distribution or property division pursuant to Florida Statute Section 61.075. You first determine whether a business is a marital asset or a nonmarital asset. If the business was started prior to the marriage, it most likely would be considered a nonmarital asset. Regardless of whether a business is a nonmarital asset or a marital asset, there still could be a value to the business for purposes of equitable distribution or property division. Further, there could be a marital component to the value of a nonmarital business under certain circumstances if the value of the business increased during the marriage. Businesses incorporated after the date of marriage would most likely be considered a marital asset.
There are different ways to value a business. It can be valued using the asset approach, which is the book value of the stock and financial condition of the business; the income approach, which is the earnings capacity of the business; or the market approach, which is the market price of stocks and corporations engaged in the same or similar line of business having their stocks actively traded in a free and open market, either on an exchange or over the counter. In a dissolution of marriage case, a forensic accountant is necessary to determine and calculate the value of the corporation or business entity. It is important to hire an experienced family law attorney to assist you in determining the value of any business entity involved in your divorce case.
The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.
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