If you co-own a business with your spouse, this can make divorce proceedings much more difficult. However, an accurate business valuation will help to alleviate the tension and provide a fairer arrangement.
Florida follows equitable division law. This means that instead of an equal split of marital property, the court attempts to divide assets by considering several factors. In the case of a business, an attempt at a fair division is highly complicated in divorce.
Before you worry about dividing the business’s profits or ownership, you should answer a few questions. First, your spouse may willingly sell or buy their rights to the company before any division is necessary. Next, determine if the business is a marital asset at all. If you started the business before your marriage, it might be exempt. However, if your spouse contributed to the company in any meaningful way, most likely, the business falls under marital property.
Why get a valuation?
Once you decide the business will undergo the division process, a fair market valuation might be your best option to expedite the proceedings. Hire a qualified professional to judge the worth of your business adequately. Once they present their findings, your spouse may be more willing to agree to a buyout. Even if they do not want to give up interest in the business, the division process will become much easier since you have objective measurements.
Splitting a business after marriage is not easy. The fastest way to a resolution is usually a buyout. If you cannot come to an arrangement, paying for a proper valuation may help the process and provide a result both you and your spouse can live with.