When a business interest is part of the marital estate in a Fort Lauderdale divorce, its value must be determined before equitable distribution can proceed. Florida courts accept several valuation methodologies, and the one that produces the most accurate result depends on the type of business and how it generates income, as well as the quality of its financial records. Income-based approaches look at the business's earnings history and apply a capitalization rate to arrive at a present value. Asset-based approaches value the company based on what it owns and owes. Market-based approaches compare the business to similar companies that have sold. Brodzki Jacobs, retained by Fort Lauderdale clients for business valuation disputes, understands which methodology applies and how to challenge a valuation offered by the opposing side.
Personal goodwill, meaning the value of the business that is tied to the owner's individual reputation and expertise rather than the enterprise itself, is generally not subject to equitable distribution in Florida. Enterprise goodwill, which would transfer with the business in a sale, is marital. Distinguishing between the two is a common point of contention in closely held business valuations. The outcome of that distinction can shift the distributable value of the business significantly, which is why having a qualified business valuator and experienced legal representation matters in these cases.
