Skip to main content
Question

How do I value a business in a Florida divorce or family law for purposes of equitable distribution or property division?

Sponsored Answer
Joshua K. Friedman - Family Law - Super Lawyers

Answered by: Joshua K. Friedman

Located in Boca Raton, FLBrodie & Friedman, P.A.

Phone: 561-392-5100
Fax: 561-392-5199

View Profile
Answer

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. 

 

 

Other Answers About Family Law

Photo of Radford J. Smith

How Do I Find An Effective Child Custody Lawyer In Las Vegas, Nevada?

Child custody is often the most contentious issue among divorcing or separating parents in Nevada. Choosing the …

Sponsored answer by Radford J. Smith

Photo of Michael E. Manely

Do I Need An International Family Law Attorney In Georgia?

In today’s global world, families increasingly have ties to multiple nations. Those ties can give rise to …

Sponsored answer by Michael E. Manely

Photo of Colleen Norman

Can My Parenting Plan Be Modified Post-Divorce In Florida?

The answer is yes, but modifying a parenting plan can be complicated in Florida. Even if both parents agree to …

Sponsored answer by Colleen Norman

Call Me
561-392-5100

To: Joshua K. Friedman

Super Lawyers: Potential Client Inquiry

Required fields are marked with an asterisk (*).

Disclaimer:

The information contained in this web site is intended to convey general information. It should not be construed as legal advice or opinion. It is not an offer to represent you, nor is it intended to create an attorney-client relationship. The use of the internet or this contact form for communication is not necessarily a secure environment. Contacting a lawyer or law firm email through this service will not create an attorney-client relationship, and information will not necessarily be treated as privileged or confidential.

Page Generated: 0.49552798271179 sec