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Valuing a Business in an Orlando, Florida Divorce Case

If you are divorcing in the Orlando, Florida area and your spouse owns a business, how is the business valued and equitably divided? Florida Statute 61.075 is the Florida Statute that details equitable distribution in a Florida Dissolution of Marriage Case. The statute requires that the judge first determine whether an asset is a marital asset or a nonmarital asset. Is the business a marital asset or a nonmarital asset when you divorce? How does a judge divide a business during a divorce in the Orlando, Florida area? There are different components to the business in the valuation.

One component is personal goodwill of the business. Personal goodwill of a business is a nonmarital asset. What is personal goodwill of a business? Personal good will is the value that attaches to the business based on the owner’s reputation or skill. For example:  Does someone go to the business because that person wants to be treated by Dr. X because Dr. X is known as a great doctor or the best doctor in a certain field. If Dr X left the business, would anyone still go to the business? Personal goodwill Is a nonmarital asset. It is not equitably divided. One thing to look at when determining the value of the personal good will of the business is whether there is a covenant not to compete such as a noncompete agreement.  

Another component of the business evaluation is enterprise goodwill. What is enterprise goodwill? Enterprise goodwill is the business’s location, the business’s employees, the business’s strategy, and the business’s branding. The business’s location (i.e. is the business at a great location such as an intersection with lots of traffic)? Does the business have excellent employees? Does the business have a strategy? Does the business have branding? That is enterprise goodwill. 

Another component of the business is the hard assets of the business. The hard assets of the business are marital. These hard assets are things such as the office building, the equipment of the business, and the furniture of the business.  

You can obtain a business valuation to ascertain the proper worth of the business. If you want ta business valuation of the business, you will have to pay an expert to value the business for your case. 

f you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation. You may also visit my website at: https//: www.AnnMarieGildenLaw.com

This article is for informational purposes only; and it does not form an attorney client privilege.