Owning and operating a business is a lifelong goal for many people. It takes a great deal of time, effort and investment to get a business up and running. For many Florida spouses, protecting their business from loss during divorce is a top priority, although reaching that goal can seem like an insurmountable task. Part of that process involves obtaining a business valuation, which provides the information necessary to begin discussing this important property division topic.
A business valuation is simply an estimated value that encompasses all aspects of a business. It is important to hire an independent expert to complete this process, one who is familiar with the size, type and scope of the business being valued. The estimation of a business's value depends on a number of factors.
The process begins with a thorough examination of all financial records pertaining to the business. The valuation professional will also look at the current economy when determining how much a business is worth. The value of stock, any existing debts and all inventory on hand and intellectual property may all come into play. Valuation is also based on intangible factors, such as an existing base of clients and/or the strength of the company's online or social media presence.
For those in Florida who are considering divorce, it is important to have a professional business valuation completed as early in the process as possible. Having that information in hand makes it easier to negotiate how business assets will be handled during the divorce. As with so many things, preparation is key to successful outcome.
Source: dailyherald.com, "What will happen to my business if I get a divorce?", Miriam Cooper, Sept. 6, 2017