The decision to divorce does not mean that your Florida small business will cease to function. In fact, your family-owned business can continue to prosper, even while you walk through the entire divorce process. However, the end of your marriage will affect your business in a few ways. For example, which spouse will keep the business? Can you share ownership after divorce? Is it possible to retain full or sole ownership?
Determining what will happen to your business after a divorce is a long and complex process. Issues such as marital property and asset distribution are not easy matters to navigate. One of the first steps that you can take to ensure the protection of your business interests is to seek an accurate and up-to-date valuation of your business assets.
How can I determine the value of my business?
Determining the value of a business in a divorce is an important step to ensuring a fair and equitable property division settlement. Identifying the economic value of a company can be subjective, but both legal and financial professionals can reach a number by doing some of the following:
- Review financial statements, records and other documents that could prove your company's financial health.
- Compare your business with other similar companies, including looking at future growth and plans for expansion in the future.
- Review your company's cash flow and comparing it to that of other similar businesses.
These are just some of the methods used to determine how much your business is worth. This is one of the first steps in your pursuit of a beneficial and profitable division of marital assets.
Pursuing your fair share of marital property
If your small business falls into the category of marital property, it is subject to division during your divorce. However, that does not mean that you will lose your interests or find yourself in a bad position after the process is final. You have the right to seek a negotiated settlement, which may allow you to pursue an outcome that leaves you with all or a large portion of your business interests intact.
Divorce is a frightening prospect for a small business owner. If you have concerns about what this process could mean for your business interests or how you can retain your ownership of a jointly owned company, you deserve answers, support and experienced guidance. There is much at stake, and you can take the first step simply by seeking an explanation of your legal options.