Profit and Loss (P&L) statements are a widely used source to prove net income for the business owner as well as a tool to help show the value of a business. The use of P&L statements are widely used for support and alimony calculations, calculations for equitable distribution and for calculations to show the health of a business during commercial litigation.
However, merely showing the P&L statement is not enough. Supporting documents must also be shown for people who own their own businesses in any court proceeding where the statements are required to prove net income or value of the company. A court will not accept a stand alone P&L statement.
The court’s view is that anyone can type up numbers to create a P&L statement. To substantiate the numbers on the P&L statement, the supporting documents must be submitted to the court, or the P&L statements will not be considered, which could adversely affect the outcome of your case.
