St. Petersburg Business Valuations Lawyer
Performing a business valuation is something that commonly happens in high net worth divorce cases, as well as cases involving lower earners. The courts use equitable distribution when dividing marital assets between the two spouses in divorce. This process requires the court to identify marital assets, assign them a value, and then divide them fairly, although not necessarily equally.
Valuing a business is one of the most complicated aspects of many divorce cases. A St. Petersburg business valuations lawyer will have the necessary resources to properly value a business and determine what to do with it moving forward.
Assigning Values to a Business
Assigning values to marital assets, such as a business, during the divorce process is often a tedious task. Spouses do not always agree with the value of a business determined by the other side. In some cases, one spouse does not agree that certain assets should be included as part of the business. Some business owners simply find it difficult to value a business on their own. Regardless of the reason, valuing a business always has the potential to end in dispute.
For these reasons, it is not uncommon for divorcing spouses to utilize expert witnesses, such as financial professionals, that can help value a business. A St. Petersburg business valuations lawyer and relevant experts will work together to conduct a business valuation. During the discovery process, an attorney can also obtain the financial documents for the business.
Methodologies Used in Business Valuation
There are multiple methodologies used to value a business during divorce proceedings. A qualified accountant or business valuator can determine which method is best to use in a specific case. An expert will consider many factors when valuing a business including net value, fair market value, intrinsic value, investment value, and other relevant factors. It is important to determine the correct standard of value, which is sometimes a combination of different valuation methods.
The Value of Goodwill/Reputation
During the valuation of the process, goodwill and the business’ reputation is often taken into consideration. Goodwill is defined as the value of a business or trade based on continued customer patronage in the future based on the reputation or name of the business. The amount of goodwill that contributes to the overall value of a business varies from case to case, but it is a factor that is often taken into consideration.
Our Business Valuations Lawyers in St. Petersburg Can Provide Sound Legal Advice
Even the most savvy of business owners need guidance during divorce proceedings. If you have a business, you are likely concerned about what will happen to it after your divorce. At Greene & Greene, our St. Petersburg business valuations lawyers have the resources necessary to accurately value your business, and can provide sound legal advice about the options you have during equitable distribution proceedings. Call us now at (727) 821-2900 or contact us online to schedule a consultation with one of our seasoned attorneys and to learn more about how we can help with your case.