Business Valuations And Property Division In A Fort Lauderdale Divorce

When one or both spouses own a business, getting a divorce in Fort Lauderdale is more complex. It may be one of the most valuable assets the couple owns, and deciding how much it’s worth can determine who walks away with what.

Property division in Broward County divorce cases is done equitably, meaning the court aims for a fair, reasonable split, not an equal one. Business valuation is a key step in the process. Understanding how the court handles this issue can help protect your rights and financial security.

Factors Courts Consider When Valuing A Business In A Fort Lauderdale Divorce

Section 61.075 of the Florida Statutes outlines how courts determine property division in a Fort Lauderdale divorce. It applies to all property and assets the couple owns, including businesses started or grown during the marriage.

To divide business interests equitably, here’s what courts usually look at:

• The value of the business, typically on the date the divorce is filed or another date the court finds fair.
• If the business existed before marriage, only the increase in value during the marriage is subject to division.
• Service firms, retail operations, and family-run companies may be valued differently.
• Florida distinguishes between enterprise goodwill, or the financial value of the business, and personal goodwill, representing customer relationships and the company’s reputation in the community.
• Tax returns, profit-and-loss statements, and balance sheets all play a role in determining value.

Valuation isn’t guesswork. It’s a detailed financial process that can significantly affect the outcome of your Fort Lauderdale divorce settlement.

What To Expect: Fort Lauderdale Divorce Business Valuation Process

The Broward County Urban Planning Commission reports that over 3,000 small business applications are filed yearly. If you or your spouse owns a business and you’re filing for a divorce in Fort Lauderdale, consider hiring a forensic accountant or business valuation expert.

Here’s what to expect throughout the process:

• Document Collection: This includes tax filings, payroll reports, client lists, and any recent financial statements.
• Valuation Method: You can choose the income approach, based on projected earnings, the market approach, which compares similar companies, or the asset approach, which tallies total assets minus debts.
• Analysis of Cash Flow: This looks for inconsistencies or unreported income, something courts take seriously.
• Final Valuation Report: This is a written summary that can be presented in court or during negotiations.

A solid business valuation gives your attorney the leverage to negotiate a fair settlement or challenge an unrealistic one.

Contact Our Experienced Fort Lauderdale Divorce Attorney To Protect Your Business Interests

Negotiating property division in a Broward County divorce where a business is involved requires strategy and precision. At The Law Office of Sandra Bonfiglio, we take the actions needed to ensure your business assets are valued accurately and fairly.

Whether you’re the owner or a spouse seeking your fair share, we can help you navigate the numbers, the negotiations, and the legal process. To protect your business and your financial future, contact our experienced Fort Lauderdale divorce attorney and request a consultation today.

Sources:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html

broward.org/Planning/Demographics/Pages/QuickFacts.aspx