On behalf of North Tampa Legal Group posted in divorce on Monday, August 29, 2016.
Florida couples who are divorcing and who are also business owners may have an extra layer of complexity in their property division. The first necessary step is determining the value of the business. This can be done in two different ways depending upon a number of factors including the complexity of the business, how much money the couple wants to spend, whether or not the couple hopes to get through the divorce quickly and whether the figure is ultimately needed by a judge.
The choice is between full valuation and a calculation of value. A full valuation is the most accurate, and it may be necessary for an arbitrator or a judge. However, for mediation or negotiations, a couple may be able to work with a calculation of value. This is less thorough and reliable, but it can be a good choice in a reasonably amicable divorce because it is faster and cheaper.
Ultimately, people must make a decision based on their own individual set of circumstances. However, as is the case with many aspects of divorce, if both parties are able to cooperate, the process of assessing the value of the business may be less time-consuming and less expensive.
Evaluating the worth of the business is only the first step. The couple then must decide how it will be divided. This may also be based on a number of factors such as whether there was a prenuptial agreement and whether the other spouse worked in the business. The situation might become even more complex if they both run the business. They might continue to work together, or one might step back but still keep a share in the company. These are all nuances that couples might be able to untangle better in negotiations led by their respective attorneys rather than in a courtroom.