Working With The Complex Issue Of Business Valuation

During a divorce, business valuation becomes critical. As part of the property division for your marital estate, your assets need to be accurately valued. This is especially important for high-value assets such as a business or professional practice. Unlike individuals who receive income from an employer, those who own a business or professional practice can receive variable income, and the business or practice may be inherently difficult to value.At MGM Law, P.A., our team is experienced and adept at carefully examining all of the financial records of a business. We will look to determine an accurate valuation of the overall business, including the income stream produced by the entity.

Do The Numbers All Add Up?

It is important to have accurate financial records for all of your assets, but it is especially important for something like a family business or professional practice. If a spouse wishes to manipulate the income or revenue from such a business, it is much more difficult to verify than if they worked for a third-party business that provides accurate pay stubs.

If a spouse is planning on a divorce, they could divert revenue within the books of the business and make it appear they are making less than they actually are. Our attorney and our team will thoroughly examine the business and check to see that the purported financial statements truly do add up and that you receive an equitable share of this asset.

When valuing a small business, we call on experts and other financial professionals to provide an accurate business appraisal.

You May Not Have A Second Chance

It is essential that this be done correctly, as the division of your marital assets is generally not subject to later modification by a Florida court. If you make a mistake or accept inaccurate valuations, you face a very difficult litigation challenge, as you will need to prove actual fraud by your spouse. While this may be possible, it will be expensive and there must be a substantial sum at stake. It is much better to take the time and get it right the first time.

Contact Our Firm

Call our Pensacola office for a free initial consultation with a lawyer to discuss business valuation during a divorce. You can reach us at 850-450-1755 or by using our convenient online form.

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