Seeking An Accurate Business Valuation In Divorce
Going through a divorce is challenging, especially for business owners. Trying to go through negotiations when you either own or co-own a business means needing an accurate business valuation of your company. When high-asset divorce cases involve business interests, it is vital to accurately assess the value of the business.
At Jeffrey Law, PA, we offer guidance and support during high-stakes divorce proceedings. As experienced attorneys, we recognize the importance of a business valuation in a divorce. In order to effectively negotiate over any property in a divorce, you must first know the present value of that asset. Thankfully, if you are dealing with a co-owned business or other high-asset divorce matters, we are here to assist you every step of the way.
Preparing For Divorce As A Business Owner
Business owners facing divorce must prepare by gathering comprehensive financial records and understanding their business’s value. If a business is co-owned with a spouse, both parties must consider the potential impact on operations and ownership. The higher the value of the business, the more is at stake, and we are prepared to take a diligent and meticulous approach while representing you.
There are several ways to divide business assets during a divorce. In most cases, divorcing spouses settle for one of three outcomes:
- Selling the business outright and splitting the profits
- One spouse buying the other’s shares
- Both spouses continue co-owning the business
Each option comes with its own set of challenges, including addressing contractual disputes and ensuring a smooth transfer of ownership. After the divorce, we can aid with any restructuring needs, especially if one spouse maintains ownership of the business.
Addressing Your Business Valuation Questions
Understanding how divorce impacts business ownership is vital for business owners. Some of the more common questions we answer for our clients include:
What happens to the business if both spouses are the owners?
When both spouses are co-owners, the business must be evaluated to determine its value as part of the marital assets. If one or both spouses choose to sell their share of the company, there will likely be negotiations about who will receive how much of the profits. If both owners choose to keep their share, there may need to be a new contract that redefines the terms of the ownership.
How is business valuation conducted during a divorce?
Business valuation during a divorce involves assessing the economic value of a business to ensure fair distribution of assets. This process typically includes reviewing financial statements, tax returns and business records. Our lawyers can consult with forensic accountants to analyze the business’s income, expenses, assets and liabilities. This way, we can consider factors such as market conditions, industry trends and the business’s future earning potential before developing a strategy for negotiation or litigation.
How can business owners prepare for the divorce?
Being thorough in a divorce as a business owner is critical. Preparation involves gathering detailed financial documents, understanding the business valuation process, and consulting legal and financial professionals. We can guide you through what you need to do to prepare for your divorce.
Keep Your Fair Share In A Divorce
As a business owner facing a divorce, you want to be sure you are protecting your interests and the needs of your company. Choose a Miami law firm that understands what is at stake to help you. Call us at 305-703-0702 or email us here to schedule your initial consultation today.